Find p122 for Problem 14-24.

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 and a 20% chance of switching to store 2.

• In each period, store 2 customers have a 90%

chance of returning and a 10% chance of switching to store 1.