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

question 7

Essay

There is a 30% chance that any current client of company A will switch to company B this year.There is a 40% 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 500 clients and company B has 300 clients,
(a)How many clients will each company have next year?
(b)How many clients will each company have in two years?

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Definitions:

Moral Obligation

A duty or responsibility that is perceived as ethically required, even though it is not legally enforceable.

Requirements Contract

A contractual agreement in which one party agrees to supply as much of a product or service as the other party needs during a specified period.

Particular Commodity

Refers specifically to a unique or specified commodity traded on commodity markets, such as gold, oil, or wheat.

Reaffirmation Promise

A commitment to maintain or adhere to an agreement or obligation, especially after a challenge or dispute.