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 0.92 0.08
MDA 0.04 0.96

(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=

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!