Mathematics, 20.02.2020 04:03 MileenaKitana
The leading brewery on the West Coast (labeled A) has hired an OR analyst to analyze its market position. It is particularly concerned about its major competitor (labeled B). The analyst believes that brand switching can be modeled as a Markov chain using three states, with states A and B representing customers drinking beer produced from the afore- mentioned breweries and state C representing all other brands. Data are taken monthly, and the analyst has constructed the following (one-step) transition matrix from past data. A B C A 0.70.15 0.15 B 0.05 0.75 0.2 C 0.1 0.05 0.85 (a) What are the steady-state market shares for the two major breweries? (b) What is the probability that a current beer A customer will be purchasing beer B in 5 months? (c) What is the probability that a current beer B customer wll be purchasing beer A in 5 months?
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The leading brewery on the West Coast (labeled A) has hired an OR analyst to analyze its market posi...
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