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
E)None of the above

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 
E)None of the above

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 
E)None of the above

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