There Is a 30% Chance That Any Current Client of Company

question 48

Short Answer

There is a 30% chance that any current client of company A will switch to company B this year.There is a 20% chance that any client of company B will switch to company A this year.If these probabilities are stable over the years, and if company A has 1000 clients and company B has 1000 clients, in the long run (assuming the probabilities do not change), what will the market shares be?

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Definitions:

Interval Data

A type of numerical data which not only has order, but also has meaningful differences between values, though it lacks a true zero point (e.g., temperature in Celsius).

Ordinal

A type of data or scale that shows an ordered relationship among the variable's possible values, but does not specify the magnitude of difference between them.

Nominal

Referring to data classified into categories without a natural order or ranking among the categories.

Interval Data

A type of data that consists of numerical scores that exist on a scale with equal intervals between values but no true zero point.