Table 14-1 The Following Data Consists of a Matrix of Transition Probabilities

question 65

Multiple Choice

Table 14-1
The following data consists of a matrix of transition probabilities (P) of three competing companies, and the initial market share π(0) .Assume that each state represents a company (Company 1, Company 2, Company 3, respectively) and the transition probabilities represent changes from one month to the next.
P = π(0) = (0.3, 0.6, 0.1)
-Using the data in Table 14-1, and assuming that the transition probabilities do not change, in the long run what market share would Company 2 expect to reach? (Rounded to two decimal places.)

• A)0.30
• B)0.32
• C)0.39
• D)0.60

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