Table 15-2 The Following Data Consists of a Matrix of Transition Probabilities

question 56

Multiple Choice

Table 15-2
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 15-2, 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)
• E) π(2) = (0.47, 0.40, 0.13)

---

Definitions:

Recognition

A memory task in which a person must simply identify material as familiar or as having been encountered before.

Nondeclarative Memory

A type of long-term memory that involves skills and actions, which can be performed without conscious thought or declaration.

Semantic Memory

A type of long-term memory involving the capacity to remember words, concepts, and facts not tied to personal experiences.

Episodic Memory

An aspect of memory dedicated to the retrieval of unique events, circumstances, and personal encounters from the past.