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Answer all parts with step by step detailed calculation 1.- Manchester and Palacio de Acero have 1,000,000 common customers, loyalty corresponds to the following table.
Answer all parts with step by step detailed calculation
1.- Manchester and Palacio de Acero have 1,000,000 common customers, loyalty corresponds to the following table. Probability of Customer Loyalty Palacio Manchester Palacio 0.9 0.1 Manchester 0.4 0.6 Each loyal customer (read stationary loyalty) more (within this million) gives an average profit of 500 pesos per year. Palacio de Acero, which is disadvantaged by the preference of its customers, plans to implement the regular monthly raffle of super luxury cars, 300 in total for a year, at a cost of 750,000 pesos each. A firm specializing in market research anticipates that the previous matrix would be modified as follows: Probability of Fidelity of clients Palacio Manchester Palacio 0.7 0.3 Manchester 0.1 0.9 i) Assuming that Manchester will not move in reaction to Palacio, how convenient is it for Palacio to hold such a raffle? ii) The consulting firm estimates, however, that Manchester will react with a similar policy (raffling the same type of vehicles, but only 100) in such a way that the matrix will take the following form: PROBABILIDAD DE FIDELIDAD DE LOS CLIENTES Palacio Manchester Palacio 0.8 0.2 Manchester 0.2 0.8 Should Palacio carry out his raffle projectStep by Step Solution
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