The Transition Matrix Below Shows the Probabilities That Customer Switch

question 28

Multiple Choice

The transition matrix below shows the probabilities that customer switch between two grocery stores, Don's and Limmer's, each week. $$\begin{array}{l}~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { Next Week }\\\begin{array} { l c c } \text { This Week } & \text { Don's } & \text { Limmer's } \\\hline \text { Don's } & 0.9 & 0.1 \\\text { Limmer's } & 0.2 & 0.8\end{array}\end{array}$$ If a customer shopped at Don's the first week, what is the probability that they are shopping at Limmer's the third week?

• A) 0.17
• B) 0.34
• C) 0.66
• D) 0.83
• E) none of the above

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Definitions:

Corporate Social Responsibility

Refers to the ethical obligation of companies to contribute to the betterment of society and minimize negative impacts on the environment and communities.

Business Model

A conceptual framework that outlines how a company creates, delivers, and captures value.

Stakeholder

An individual or group with an interest or concern in the success and operations of a business, project, or endeavor, which can include customers, employees, investors, suppliers, and the community.

Employee

An individual who works part-time or full-time under a contract of employment, contributing labor and expertise to an employer.