Three Fast Food Hamburger Restaurants Are Competing for the College

question 42

Short Answer

Three fast food hamburger restaurants are competing for the college lunch crowd.Burger Bills has 40% of the market while Hungry Heifer and Salty Sams each have 30% of the market.Burger Bills loses 10% of its customers to Hungry Heifer and 10% to Salty Sams each month.Hungry Heifer loses 5% of its customers to Burger Bills and 10% to Salty Sams each month.Salty Sams loses 10% of its customers to Burger Bills while 20% go to Hungry Heifer.What will the market shares be for the three businesses next month?

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Definitions:

Z-score

A statistical measurement of a score's relationship to the mean in a group of scores.

Sampling Distribution

A distribution of probabilities associated with a particular statistic, originating from a random sample.

Random Sample

A subset of a statistical population in which each member of the subset has an equal probability of being chosen.

Sampling Distribution

The likelihood distribution of a specific statistic derived from a random sampling.