A Local Business a Has Two Competitors, B and C

question 70

Multiple Choice

A local business A has two competitors, B and C. No customer patronizes more than one of these businesses at the same time. Initially, the probabilities that a customer patronizes A, B, or C are 0.4, 0.4, and 0.2, respectively. Suppose A initiates an advertising campaign to improve its business and finds the following transition matrix to describe the effect. ​ ​
​
If A runs the advertising campaign for 3 weeks, find the probability that a customer will still patronize business B.
​

• A)0.0640
• B)0.2960
• C)0.1280
• D)0.0960
• E)0.2888

---

Definitions:

Peanut Allergy

An allergic reaction that occurs when one's immune system overreacts to proteins in peanuts, potentially causing severe and life-threatening reactions.

Syndicate

A group of individuals or organizations combined to promote some common interest, commonly used in reference to banking, investment, or insurance groups.

Financing

The process of providing funds for business activities, making purchases, or investing.

Specific Large Project

A designated and sizable endeavor or plan, often involving construction or major developmental work.