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?

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Definitions:

Research Problem

A clearly defined issue or question that a researcher seeks to answer or solve through systematic investigation and analysis.

Blind Taste Test

A method of product testing where the participants are unaware of the brands being tested to avoid bias in their feedback.

New Coke

A reformulated version of Coca-Cola introduced in 1985, which was met with widespread consumer backlash leading to the return of the original formula, rebranded as "Coca-Cola Classic."

Quantitative

Refers to a methodology that focuses on quantifying the collection and analysis of data through statistical, mathematical, or computational techniques.