Bark Bits Company Is Planning an Advertising Campaign to Raise $$\left[ \begin{array} { c c } .75 & .25 \\.20 & .80\end{array} \right]$$

question 40

Essay

Bark Bits Company is planning an advertising campaign to raise the brand loyalty of its customers to .80.
a.The former transition matrix is
$$\left[ \begin{array} { c c } .75 & .25 \\.20 & .80\end{array} \right]$$
What is the new one?
b.What are the new steady state probabilities?
c.If each point of market share increases profit by $15000, what is the most you would pay for the advertising?

---

Definitions:

Survey Battery Tests

Multiple choice and true/false tests usually given in school settings, that measure broad content areas. Often used to assess progress in school. It is a type of achievement test.

Neuropsychological Assessment

Neuropsychological assessment is the evaluation of brain function through structured tests that measure cognitive, motor, behavioral, and linguistic abilities.

Mental Ability

A person's capacity to think, reason, solve problems, and understand complex ideas; often assessed through intelligence and cognitive tests.

Vocations

Occupations or careers, especially those for which individuals are trained or to which they feel a strong calling or passion.