A City Is Served by Three Cable TV Companies: Xcellent

question 26

Essay

A city is served by three cable TV companies: Xcellent Cable, Your Cable, and Zephyr Cable. A survey of 1000 cable subscribers shows this breakdown of customers from the beginning to the end of August. $$\begin{array} { c | c c c } \text { Company on } & { \text { Company on August } 31 } \\\text { August 1 } & \text { Xcellent } & \text { Your } & \text { Zephyr } \\\hline \text { Xcellent } & 300 & 50 & 50 \\\text { Your } & 10 & 200 & 40 \\\text { Zephyr } & 40 & 80 & 230\end{array}$$
a.Construct the transition matrix.
b.What was each company's share of the market at the beginning and the end of the month?
c.If the current trend continues what will the market shares be?

---

Definitions:

Incremental Cash Flows

The additional cash flows from operations that a business generates from taking on a new project.

Marketing Study

An analysis or research conducted to gain insights into and understand potential market trends, consumer behaviors, or the effectiveness of marketing strategies.

Shipping Costs

Expenses associated with the transportation of goods from one location to another.

Tax Purposes

A phrase referring to the reasons or motivations behind actions taken by individuals or businesses to comply with tax laws, often to reduce tax liability.