Question: The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities. ToFromSpecial BMDASpecial B 0 .
The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities.
ToFromSpecial BMDASpecial BMDA
a
Which brand appears to have the most loyal customers? Explain.
SelectSpecial BMDA has the most loyal customers because stay with them and only switch to the other brand, as opposed to SelectSpecial BMDA 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 BMDA
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