Explore BrainMass

Explore BrainMass

    Markov Processes

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose that in Problem 8 a new toothpaste brand enters the market such that the following transition probabilities exist

    From Special B MDA T-white
    Special B 0.80 0.10 0.10
    MDA 0.05 0.75 0.20
    T-white 0.40 0.30 0.30

    What are the new long-run market shares? Which brand will suffer most from the introduction of the new brand of toothpaste?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:57 pm ad1c9bdddf

    Solution Preview


    Please see the attached file for detaile steps and calculations. It contains answer tp first part of the question "What are the new long-run market shares?". Second part depends on the answer to question 8 as mentioned by you. IF you have calculated long run market shares in question 8 then just compare those figures with values obtained in this question.

    Thank ...

    Solution Summary

    The solution contains calculation of new market share.