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=
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