Question
Three FM radio stations (A,B, andC) are competing for customers in the same market area. Through an aggressive advertising campaign, each month stationAis capturing 15%
Three FM radio stations (A,B, andC) are competing for customers in the same market area.
Through an aggressive advertising campaign, each month stationAis capturing 15% of stationB's customers and 5% of stationC's customers. (Hint: The phrase "stationAis capturing 15% of stationB's customers" means that 15% of the listeners are moving fromBtoA, not the other way around.) At the same time, stationAis losing only 2% of its customers toBand 2% of its customers toC. Additionally, each month 1% ofB's customers switch toC, and 1% ofC's customers switch toB.
Initially,AandBeach have 30% of the listeners andChas 40%.
Use this information to answer the following questions. (Give your answers correct to three decimal places. Note that you are asked to give decimal values and not percentages. For example, you would need to enter 0.628 as opposed to 62.800%.)(a) What fraction of the listeners willAhave after 3 months?
(b) What fraction of the listeners willBhave after 3 months?
(c) What fraction of the listeners willChave after 3 months?
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