A Market Survey Shows That One Third of the Owners $\frac { 3 } { 13 }$

question 256

Multiple Choice

A market survey shows that one third of the owners of Sorey State Boogie Boards became disenchanted with the product and switched to C&T Super Professional Boards the next surf season, while the other remained loyal to Sorey State. On the other hand, four fifths of the C&T Boogie Board users remained loyal to C&T, while the rest switched to Sorey State. Set these data up as a Markov transition matrix, and calculate the probability that a Sorey State Board user will be using the same brand two seasons later.
Take 1 = Sorey State, 2 = C&T.

• A)The probability is \(\frac { 3 } { 13 }\) .
• B) The probability is \(\frac { 11 } { 45 }\) .
• C) The probability is \(\frac { 23 } { 45 }\) .
• D) The probability is \(\frac { 29 } { 45 }\) .
• E) The probability is \(\frac { 16 } { 45 }\) .

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Definitions:

Direct Materials Quantity Variance

The cost associated with the difference between the actual quantity and the standard quantity of direct materials used in producing a commodity multiplied by the standard direct materials price.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the product's cost.

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the expected amount, indicating efficiency in material usage.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be easily traced to it.