Table 14-1 The Following Data Consists of a Matrix of Transition Probabilities

question 82

Multiple Choice

Table 14-1
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 14-1,determine Company 1's estimated market share in the next period.

• A)0.10
• B)0.20
• C)0.42
• D)0.47
• E)None of the above

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Definitions:

Inside Elements

Fundamental or essential components that exist or operate within a particular system or context.

Structural Functionalism

A sociological perspective that views society as a complex system whose parts work together to maintain stability and social order.

Structures of Society

The complex framework of social institutions, organizations, norms, and values that shape social interactions and the functioning of a society.

Anomie

A condition of society in which there is a breakdown of social norms and values, leading to a state of normlessness.