Table 14-1
The following data consists of a matrix of transition probabilities (P)of three competing companies, and the initial market share π(0).Assume that each state represents a company (Company 1, Company 2, Company 3, respectively)and the transition probabilities represent changes from one month to the next.
P = π(0)= (0.3, 0.6, 0.1)
-Using the data in Table 14-1, and assuming that the transition probabilities do not change, in the long run what market share would Company 2 expect to reach? (Rounded to two decimal places.)
A)0.30
B)0.32
C)0.39
D)0.60

Question

Table 14-1
The following data consists of a matrix of transition probabilities (P)of three competing companies, and the initial market share π(0).Assume that each state represents a company (Company 1, Company 2, Company 3, respectively)and the transition probabilities represent changes from one month to the next.
P =  π(0)= (0.3, 0.6, 0.1)
-Using the data in Table 14-1, and assuming that the transition probabilities do not change, in the long run what market share would Company 2 expect to reach? (Rounded to two decimal places.)
A)0.30 
B)0.32 
C)0.39 
D)0.60

Quizplus · Accepted Answer

The Answer of Table 14-1
The following data consists of a matrix of transition probabilities (P)of three competing companies, and the initial market share π(0).Assume that each state represents a company (Company 1, Company 2, Company 3, respectively)and the transition probabilities represent changes from one month to the next.
P =  π(0)= (0.3, 0.6, 0.1)
-Using the data in Table 14-1, and assuming that the transition probabilities do not change, in the long run what market share would Company 2 expect to reach? (Rounded to two decimal places.)
A)0.30 
B)0.32 
C)0.39 
D)0.60

Table 14-1 The Following Data Consists of a Matrix of Transition Probabilities