There Is a 60% Chance That a Customer Without a Smart

question 52

Short Answer

There is a 60% chance that a customer without a smart phone will buy one this year.There is a 95% chance that a customer with a smart phone will continue with a smart phone going into the next year.If 30% of target market currently own smart phones, what is the long-run percentage of the target market that will own smart phones?

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Definitions:

Indifference Curve

A graph that shows a combination of two goods that give a consumer equal satisfaction and utility, illustrating their preferences.

Rational Consumer

A theoretical concept depicting a consumer who makes decisions based on maximizing utility, considering all available information and options.

Utility Levels

A measure of the varying degrees of satisfaction or utility that consumers derive from different bundles of goods and services.

Preferences

The tastes, desires, or choices that consumers have regarding products, goods, or services.