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:

Restrictions

Limitations or constraints imposed on activities, actions, or movements, often by laws, regulations, or policies.

Government Revenue

The income received by the government from taxes, fees, fines, and other sources.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries.

Restrictions

Limitations or conditions placed on activities, transactions, or behaviors to regulate or control their occurrence.