The Transition Matrix Below Shows the Probabilities That Customer Switch

question 52

Short Answer

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 there are 2000 customers who shop at either store, how many over the long run would shop at Limmer's?

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Definitions:

Hernán Cortés

A Spanish Conquistador who led an expedition that caused the fall of the Aztec Empire, symbolizing daring and controversial exploration.

Aztecs

Aztecs were a Mesoamerican culture that flourished in central Mexico in the post-classic period from the 1300s to the 1520s, before being conquered by the Spanish.

Expected Value

A statistical measure that calculates the average outcome when the future includes scenarios that may or may not happen.

Payoffs

The outcomes or returns from a particular action, investment, or decision, often used in game theory and economics.