Question

**Problem 16-09 (Algorithmic)**

The purchase patterns for two brands of toothpaste can be expressed as a Markov process with the following transition probabilities:

To |
||

From |
Special B |
MDA |

Special B |
0.95 | 0.05 |

MDA |
0.25 | 0.75 |

- Which brand appears to have the most loyal customers?

Explain.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

- What are the projected market shares for the two brands? If
required, round your answer to three decimal places.

=

=

Answer #1

a)

Special B appears to have the most loyal customers, because the transition probability of staying with Special B is 0.95, which is higher as compared to that of MDA, which is 0.75

b)

Steady-state probabilities are computed below:

Projected market share of Special B = 0.833 or
**83.333** %

Projected market share of MDA = 0.167 or **16.667**
%

Problem 16-09 (Algorithmic)
The purchase patterns for two brands of toothpaste can be
expressed as a Markov process with the following transition
probabilities:
To
From
Special B
MDA
Special B
0.90
0.10
MDA
0.15
0.85
Which brand appears to have the most loyal customers?
Special B
Explain.
The input in the box below will not be graded, but may be reviewed
and considered by your instructor.
What are the projected market shares for the two brands? If
required, round your...

The purchase patterns for two brands of toothpaste can be
expressed as a Markov process with the following transition
probabilities:
To
From
Special B
MDA
Special B
0.80
0.20
MDA
0.25
0.75
Which brand appears to have the most loyal customers? (MDA or
special B)
Explain.
What are the projected market shares for the two brands? If
required, round your answer to three decimal places. π1 =_ , π2
=_

Problem 3-13 (Algorithmic)
Military radar and missile detection systems are designed to
warn a country of enemy attacks. A reliability question deals with
the ability of the detection system to identify an attack and issue
the warning. Assume that a particular detection system has a 0.91
probability of detecting a missile attack. Answer the following
questions using the binomial probability distribution:
What is the probability that one detection system will detect
an attack? If required, round your answer to two...

A major traffic problem in the Greater Cincinnati area involves
traffic attempting to cross the Ohio River from Cincinnati to
Kentucky using Interstate 75. Let us assume that the probability of
no traffic delay in one period, given no traffic delay in the
preceding period, is 0.85 and that the probability of finding a
traffic delay in one period, given a delay in the preceding period,
is 0.65. Traffic is classified as having either a delay or a
no-delay state,...

A major traffic problem in the Greater Cincinnati area involves
traffic attempting to cross the Ohio River from Cincinnati to
Kentucky using Interstate 75. Let us assume that the probability of
no traffic delay in one period, given no traffic delay in the
preceding period, is 0.8 and that the probability of finding a
traffic delay in one period, given a delay in the preceding period,
is 0.7. Traffic is classified as having either a delay or a
no-delay state,...

Problem 9-05 (Algorithmic)
Kilgore’s Deli is a small delicatessen located near a major
university. Kilgore’s does a large walk-in carry-out lunch
business. The deli offers two luncheon chili specials, Wimpy and
Dial 911. At the beginning of the day, Kilgore needs to decide how
much of each special to make (he always sells out of whatever he
makes). The profit on one serving of Wimpy is $0.4, on one serving
of Dial 911, $0.53. Each serving of Wimpy requires 0.2...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 14 minutes ago

asked 39 minutes ago

asked 50 minutes ago

asked 53 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago