Question
A couple of ISyE alumni would like to open a new fast food place on campus called It's So Yummy Eats (ISYE). The alumni know
A couple of ISyE alumni would like to open a new fast food place on campus called It's So Yummy Eats (ISYE). The alumni know that they will have to compete with the already popular and efficient Panda Express and Twisted Taco located in the area. However, they feel that their superior product at an affordable price will be able to capture a large portion of the market. The alumni would like to forecast the long-term market share for ISYE in order to decide whether it is worth opening the restaurant. Since the ISYE alumni have previously taken ISyE3232, they entrusted you to conduct a marketing analysis studying customers' switching behavior via Markov Chains. As their consultant, you formulated a Markov chain with states 0 - Panda Express, 1 - Twisted Taco, 2 - ISYE and estimated the transition probabilities of customers' brand switching as follows,
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