A Local Business a Has Two Competitors, B and C

question 127

Multiple Choice

A local business A has two competitors, B and C. No customer patronizes more than one of these businesses at the same time. Initially, the probabilities that a customer patronizes A, B, or C are 0.4, 0.4, and 0.2, respectively. Suppose A initiates an advertising campaign to improve its business and finds the following transition matrix to describe the effect. ​ ​
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If A runs the advertising campaign for 3 weeks, find the probability that a customer will still patronize business B.
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• A) 0.0640
• B) 0.2960
• C) 0.1280
• D) 0.0960
• E) 0.2888

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Definitions:

Extrinsic Reward

A reward or incentive provided by an external source, such as money, grades, or recognition, to motivate behavior or performance.

Profit Sharing

A company policy of distributing a portion of its net profits to its employees, typically as a motivational tool and a means of fostering a sense of ownership and loyalty.

Start-up Costs

The initial expenses required to start a new business, including costs for legal fees, equipment, inventory, and marketing.

Skill Levels

The degrees of proficiency or competence in performing tasks or jobs, often categorized by beginner, intermediate, and advanced levels.