Answered: The purchase patterns for two brands of…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter3: Matrices

Section3.7: Applications

Problem 9EQ

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$The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities. From Το Special B MDA Special B 0.92 0.08 MDA 0.04 0.96 (a) Which brand appears to have the most loyal customers? Explain. ---Select--- has the most loyal customers because % stay with them and only other brand, as opposed to ---Select--- where only % stay with them and % switch to the % switch. (b) What are the projected market shares for the two brands? (Enter exact numbers as integers, fractions, or decimals.) Special B π 1 == MDA π2 =$

Transcribed Image Text:The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities. From Το 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--- has the most loyal customers because % stay with them and only other brand, as opposed to ---Select--- where only % stay with them and % switch to the % switch. (b) What are the projected market shares for the two brands? (Enter exact numbers as integers, fractions, or decimals.) Special B π 1 == MDA π2 =

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