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

question 24

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:

General Journal

A chronologically organized accounting record where financial transactions are initially recorded, making it the first point of entry for any transaction in the accounting system.

Sales Journal

A specialized accounting journal used to record all sales transactions of a company, particularly those on credit.

Cash Receipts Journal

A specific type of journal used in accounting to record all cash inflows or receipts during a certain period.