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.

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

(b)

What are the projected market shares for the two brands?

Special B₁=____

MDA₂=_____