Find the equilibrium conditions for Problem 14-24. Explain what it means. In Problem 14-24, Set up both

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Find the equilibrium conditions for Problem 14-24. Explain what it means.

In Problem 14-24, Set up both the vector of state probabilities and the matrix of transition probabilities given the following information:

Store 1 currently has 40% of the market; store 2 currently has 60% of the market.

In each period, store 1 customers have an 80% chance of returning; 20% of switching to store 2.

In each period, store 2 customers have a 90% chance of returning; 10% of switching to store 1.

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Quantitative Analysis for Management

ISBN: 978-0133507331

12th edition

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

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Question Posted: May 15, 2014 05:21 AM

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Find the equilibrium conditions for Problem 14-24. Explain what it means. In Problem 14-24, Set up both

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Given no changes in the Markov assumptions store 1 will eventually end ...View the full answer

Quantitative Analysis for Management

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