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A company is considering using Markov theory to analyze brand switching between three different brands of floppy disks. Survey data has been gathered and
A company is considering using Markov theory to analyze brand switching between three different brands of floppy disks. Survey data has been gathered and has been used to estimate the following transition matrix for the probability of moving between brands each month: To Brand 1 2 3 1 0.70 0.20 0.10 From 2 0.05 0.90 0.05 Brand 0.20 0.05 0.75 The current (month 1) market shares are 50%, 20% and 30% for brands 1, 2 and 3 respectively. What will be the expected market shares after two months have elapsed?(in percent form, 2 decimal places) Brand 1: Brand 2: Brand 3:
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To find the expected market shares after two months we will use the Markov transition matrix Heres h...Get Instant Access to Expert-Tailored Solutions
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