Question: With complete solution please and explanation. Management of the New Fangled Soft drink Company believes that the probability of a customer purchasing Red Pop or

With complete solution please and explanation.

With complete solution please and explanation. Management of the New Fangled Soft

Management of the New Fangled Soft drink Company believes that the probability of a customer purchasing Red Pop or the company's major competition, Super Cola, is based on the customer's most recent purchase. Suppose that the following transition probabilities are appropriate: To From Red Pop Super Cola Red Pop 09 0.1 Super Cola 0.1 0.9 a. Show the two-period tree diagram for a customer who last purchased Red Pop. b. What is the probability that this customer purchases Red Pop on the second purchase? c. What is the long-run market share for each of these two products? d. A Red Pop advertising campaign is being planned to increase the probability of attracting Super Cola customers. Management believes that the new campaign will increase to 0.15 the probability of a customer switching from Super Cola to Red Pop. What is the projected effect of the advertising campaign on the market shares

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