The only car dealership in a community stocks cars from two manufacturers, Fret and Cessy. The following transition matrix shows the probabilities of a customer purchasing each brand of car in the next year given that he or she purchased that car in the current year. $$\begin{array} { l c c c }
\text { From } / & \text { To } & \text { Fret } & \text { Cessy } \
\hline \text { Fret } & & .7 & .3 \
\text { Cessy } & & .4 & .6 \
\hline
\end{array}$$ Determine the steady state probabilities for Fret and Cessy.
A) .875, .125
B) .645, .355
C) .621, .379
D) .571, .429
E).55, .45

Question

The only car dealership in a community stocks cars from two manufacturers, Fret and Cessy. The following transition matrix shows the probabilities of a customer purchasing each brand of car in the next year given that he or she purchased that car in the current year. $$\begin{array} { l c c c } 
\text { From } / & \text { To } & \text { Fret } & \text { Cessy } \
\hline \text { Fret } & & .7 & .3 \
\text { Cessy } & & .4 & .6 \
\hline
\end{array}$$ Determine the steady state probabilities for Fret and Cessy.
A) .875, .125
B) .645, .355
C) .621, .379
D) .571, .429
E).55, .45

Quizplus · Accepted Answer

The Answer of The only car dealership in a community stocks cars from two manufacturers, Fret and Cessy. The following transition matrix shows the probabilities of a customer purchasing each brand of car in the next year given that he or she purchased that car in the current year. $$\begin{array} { l c c c } 
\text { From } / & \text { To } & \text { Fret } & \text { Cessy } \
\hline \text { Fret } & & .7 & .3 \
\text { Cessy } & & .4 & .6 \
\hline
\end{array}$$ Determine the steady state probabilities for Fret and Cessy.
A) .875, .125
B) .645, .355
C) .621, .379
D) .571, .429
E).55, .45

The Only Car Dealership in a Community Stocks Cars from Two