Table 14-2 The Following Data Consists of a Matrix of Transition Probabilities

question 48

Multiple Choice

Table 14-2
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 14-2,find the market shares for the three retailers in month 1.

• A)π(1)= (0.09,0.42,0.49)
• B)π(1)= (0.55,0.33,0.12)
• C)π(1)= (0.18,0.12,0.70)
• D)π(1)= (0.55,0.12,0.33)
• E)π(1)= (0.33,0.33,0.33)

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Definitions:

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The process by which negotiating parties modify their positions and demands to reach an agreement.