Table 14-2 The Following Data Consists of a Matrix of Transition Probabilities

question 76

Multiple Choice

Table 14-2
The following data consists of a matrix of transition probabilities (P) of three competing retailers, the initial market share π(0) .Assume that each state represents a retailer (Retailer 1, Retailer 2, Retailer 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 given in Table 14-2, find the market shares for the three retailers in month 2.

• A)π(2)= (0.30, 0.60, 0.10)
• B)π(2)= (0.55, 0.33, 0.12)
• C)π(2)= (0.44, 0.43, 0.12)
• D)π(2)= (0.55, 0.12, 0.33)

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Definitions:

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