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

question 42

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 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)

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