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A Markov matrix is a transition matrix that models a sequence of events whose changes are dependent only on their most recent state. The entries

A Markov matrix is a transition matrix that models a sequence of events whose changes are dependent only on their
most recent state. The entries of a Markov matrix are all probabilities between 0 and 1 inclusive, and in particular the
(i,j)-th entry is the probability that an event in the j-th state changes to the i-th state in the next step.
Writing the recorded values for each state at time t in a vector xt, the Markov matrix M governs the relation
xt+1=Mxt.
A certain store sells three different kinds of cereal created by three different companies: brands A,B and C. Anyone
who visits the store does so regularly, and purchases one box of cereal each week.
It is observed that someone who buys brand A's product is 77% likely to buy it again on their next visit, 7% likely to
buy brand B on their next visit, and 16% likely to buy brand C on their next visit.
Someone who buys brand B' s product is 71% likely to buy it again on their next visit, 7% likely to buy brand A on
their next visit, and 22% likely to buy brand C on their next visit.
Someone who buys brand C's product is 70% likely to buy it again on their next visit, 9% likely to buy brand A on
their next visit, and 21% likely to buy brand B on their next visit.
Assigning brands A,B and C to row/column numbers 1,2 and 3 respectively, what is the Markov matrix that
represents the above information?
Note: The Matlab syntax for the matrix ([1,2,3],[4,5,6],[7,8,9]) is
[[1,2,3];[4,5,6];[7,8,9]].
With this in mind, we can answer the following questions:
In one particular week, a survey reveals that out of all the customers who purchased cereal, 46% bought brand
A,22% bought brand B, and 32% bought brand C. In the following week, what percentage of customers
purchasing cereal will buy brand A?
%(answer correct to 2 decimal places)
What is the expected change in percentage of customers who prefer brand B five weeks after the above
survey? (Give your answer as a negative number if the share decreases).
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