Bark Bits Company is planning an advertising campaign to raise the brand loyalty of its customers to .80.
a.The former transition matrix is
$$\left[ \begin{array} { c c }
.75 & .25 \
.20 & .80
\end{array} \right]$$
What is the new one?
b.What are the new steady state probabilities?
c.If each point of market share increases profit by $15000, what is the most you would pay for the advertising?

Question

Bark Bits Company is planning an advertising campaign to raise the brand loyalty of its customers to .80.
a.The former transition matrix is
 $$\left[ \begin{array} { c c } 
.75 & .25 \
.20 & .80
\end{array} \right]$$ 
What is the new one? 
b.What are the new steady state probabilities?
c.If each point of market share increases profit by $15000, what is the most you would pay for the advertising?

Quizplus · Accepted Answer

The Answer of Bark Bits Company is planning an advertising campaign to raise the brand loyalty of its customers to .80.
a.The former transition matrix is
 $$\left[ \begin{array} { c c } 
.75 & .25 \
.20 & .80
\end{array} \right]$$ 
What is the new one? 
b.What are the new steady state probabilities?
c.If each point of market share increases profit by $15000, what is the most you would pay for the advertising?

Bark Bits Company Is Planning an Advertising Campaign to Raise [.75.25.20.80]\left[ \begin{array} { c c } .75 & .25 \\.20 & .80\end{array} \right][.75.20​.25.80​]

Bark Bits Company Is Planning an Advertising Campaign to Raise $\left[ \begin{array} { c c } .75 & .25 \\.20 & .80\end{array} \right]$