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:

Broadcast Medium

A method or channel for transmitting information, entertainment, or other messages to a large, dispersed audience simultaneously.

Coaxial

A type of electrical cable consisting of a central conductor surrounded by an insulating layer and an outer conducting shield, widely used for transmitting television, telephone, and internet signals.

Microwave

Electromagnetic waves with wavelengths shorter than one meter but longer than one millimeter, used in cooking, communication technologies, and radar.

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A technology that uses radio waves to carry information, such as sound, by systematically modulating some property of electromagnetic energy waves transmitted through space.