Table 15-1 The Following Data Consists of a Matrix of Transition Probabilities

question 53

Multiple Choice

Table 15-1
The following data consists of a matrix of transition probabilities (P) of three competing companies, and the initial market share π(0) . Assume that each state represents a company (Company 1, Company 2, Company 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 in Table 15-1, and assuming that the transition probabilities do not change, in the long run what market share would Company 2 expect to reach? (Rounded to two decimal places.)

• A) 0.30
• B) 0.32
• C) 0.39
• D) 0.60
• E) None of the above

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Definitions:

Total Employment

The total number of individuals currently employed in the economy, both full-time and part-time.

Annual Growth

The increase in the value of an economy's goods and services over a one-year period, typically expressed as a percentage.

Per Capita GDP Growth

measures the rate of growth in the average economic output per person, indicating the economic progress of a country on an individual level.

Major Industrial Country

A country that is highly developed and has a significant influence on the global economy due to its industrial capabilities.