A mobile provider has two types of deals. Currently the provider has 1 million customers, 65% of those have deal 2, and the rest have deal 1. A customer with deal 1, after in average 5 months, may either change the type of the deal (60% of cases) or leave the provider at all (the rest of cases). A customer with deal 2 may also leave the provider; it happens in average after 8 months of using deal 2. It is forbidden do change deal 2 to deal 1. Customers can make their decisions at any time. We assume also that those who left the provider do not return back. (i) Sketch the transition diagram and write down the generator matrix. (Keep time in months. Note that the state space here contains three states.)How many of the current customers are expected to have deals of type 2 in 6 months? (Round the answer to the nearest integer.)
A mobile provider has two types of deals. Currently the provider has 1 million customers, 65% of those have deal 2, and the rest have deal 1. A customer with deal 1, after in average 5 months, may either change the type of the deal (60% of cases) or leave the provider at all (the rest of cases). A customer with deal 2 may also leave the provider; it happens in average after 8 months of using deal 2. It is forbidden do change deal 2 to deal 1. Customers can make their decisions at any time. We assume also that those who left the provider do not return back. (i) Sketch the transition diagram and write down the generator matrix. (Keep time in months. Note that the state space here contains three states.)How many of the current customers are expected to have deals of type 2 in 6 months? (Round the answer to the nearest integer.)
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
Section: Chapter Questions
Problem 10MC: You are considering entry into a market in which there is currently only one producer (incumbent)....
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A mobile provider has two types of deals. Currently the provider has 1 million customers, 65% of those have deal 2, and the rest have deal 1. A customer with deal 1, after in average 5 months, may either change the type of the deal (60% of cases) or leave the provider at all (the rest of cases). A customer with deal 2 may also leave the provider; it happens in average after 8 months of using deal 2. It is forbidden do change deal 2 to deal 1. Customers can make their decisions at any time. We assume also that those who left the provider do not return back.
(i) Sketch the transition diagram and write down the generator matrix. (Keep time in months. Note that the state space here contains three states.)How many of the current customers are expected to have deals of type 2 in 6 months? (Round the answer to the nearest integer.)
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