Question: The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities. To From Special B MDA

The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities.

	To
From	Special B	MDA
Special B	0.90	0.10
MDA	0.02	0.98

(a)

Which brand appears to have the most loyal customers? Explain.

---Select--- Special B MDA has the most loyal customers because % stay with them and only % switch to the other brand, as opposed to ---Select--- Special B MDA where only % stay with them and % switch.

(b)

What are the projected market shares for the two brands? (Enter exact numbers as integers, fractions, or decimals.)

Special B ₁=

MDA ₂=

The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities. (a) Which brand appears to have the most loyal customers? Explain. (b) What are the projected market shares for the two brands? (Enter exact numbers as integers, fractions, or decimals.) Special B 1= MDA 2=

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