Question: Step by step answer without excel a Philadelphia is the home of the cheesesteak sandwich, and two of the most popular restaurants that serve cheesesteaks,

Step by step answer without excel
Step by step answer without excel a Philadelphia
a Philadelphia is the home of the cheesesteak sandwich, and two of the most popular restaurants that serve cheesesteaks, Pat's and Geno's, are bitter rivals located across the street from each other. Both restaurants have very loyal customer bases. According to market research, 79% of the customers who purchased a Pat's cheesesteak this month will continue to eat at Pat's next month, while 64% of the customers who purchased a Geno's cheesesteak this month will continue to eat at Geno's next month. In the previous month (March), 57% of cheesesteak eaters went to Pat's (Although there are other locations that serve cheesesteaks, for the purposes of this market share analysis, assume that these are the only two establishments we are considering.) (a) Determine the predicted market shares for the two restaurants for April. (Round your answers to three decimal places.) (b) Determine the predicted market shares for the two restaurants for May. (Round your answers to three decimal places.) (c) Assuming the transition probabilities hold, what will be the equilibrium market shares for the two restaurants? (Round your answers to three decimal places.)

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