The following data consists of a matrix of transition probabilities (P) of three competing companies, the initial market share state ℼ(1), and the equilibrium probability states. Assume that each state represents a firm (Company 1, Company 2, and Company 3, respectively) and the transition probabilities represent changes from one month to the next. The market share of Company 2 in the next period is a. 0.26 b. 0.283 c. 0.27 d. 0.261

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter2: Equations And Inequalities
Section2.3: Quadratic Equations
Problem 51E
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The following data consists of a matrix of transition probabilities (P) of three competing companies, the initial market share state ℼ(1), and the equilibrium probability states. Assume that each state represents a firm (Company 1, Company 2, and Company 3, respectively) and the transition probabilities represent changes from one month to the next.

The market share of Company 2 in the next period is

a. 0.26
b. 0.283
c. 0.27
d. 0.261
0.1 0.6 0.3
P= 0.7 0.1 0.2
0.2 0.2 0.6
л(1) = (0.3, 0.6, 0.1) ₁ = 0.3168 ₂0.2970 g = 0.3862
Transcribed Image Text:0.1 0.6 0.3 P= 0.7 0.1 0.2 0.2 0.2 0.6 л(1) = (0.3, 0.6, 0.1) ₁ = 0.3168 ₂0.2970 g = 0.3862
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