A community is currently being served by a single self-serve gas station with six pumps. A competitor is opening a new facility with 12 pumps across town. Table 8.12 shows the travel times in minutes from the four different areas in the community to the sites and the number of customers in each area.

Area	1	2	3	4
Old station	5	1	9	15
New competitor	20	8	12	6
Number of customers	100	150	80	50

Using the Huff retail location model and assuming that = 2, calculate the probability of a customer traveling from each area to each site.

Estimate the proportion of the existing market lost to the new competitor.

For the old station assume that S₁ = 1 and for the new station assume that S₂ = 2 (double the number of pumps) and that lambda equals two.

Questions

1. What percentage of customers from customer area 1 will switch to the new station?

2. What percentage of customers from customer area 2 will switch to the new station?

3. What percentage of customers from customer area 3 will switch to the new station?

4. What percentage of customers from customer area 4 will switch to the new station?

5. What percentage of customers from all customer areas will switch to the new station?

6. How many customers will they lose?