Suppose That Coke^® and Pepsi^® Are in a Fierce Competition

question 48

Essay

Suppose that Coke^® and Pepsi^® are in a fierce competition for the cola market. Each week each person in the market buys one case of Coke^® or Pepsi^®. If the person's last purchase was Coke®, there is a 0.80 probability that this person's next purchase will be Coke^®; otherwise, it will be Pepsi^®. (We are considering only two brands in the market in this scenario.) Similarly, if the person's last purchase was Pepsi^®, there is a 0.90 probability that this person's next purchase will be Pepsi^®; otherwise, it will be Coke^®. Currently half of all people purchase Coke^®, and the other half purchase Pepsi^®. Simulate one year of sales in the cola market and estimate each company's average weekly market share. Do this by assuming that the total market size is fixed at 100 customers. (Hint: Use the RISKBINOMIAL function.)

Understand the conceptual foundations and usefulness of critical thinking in everyday contexts and professional decisions.

Understand and describe the positive critical thinking habits of mind.

Apply core critical thinking skills to real-world issues.

Recognize how critical thinking skills support and enhance each other.

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Definitions:

Surgical Puncture

A medical procedure involving the piercing of the skin or other tissue with a sharp instrument for diagnostic or therapeutic purposes.

Vomiting

The forceful expulsion of stomach contents through the mouth, a reflex action controlled by the brain to remove harmful substances.

Spitting

Ejecting saliva, fluid, or other substances from the mouth.

Immature Cell

A cell that has not yet developed the distinct characteristics or functions of its mature form, often found in early stages of development or in regenerative processes.