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Unformatted text preview: Spring 2011 OR3510/5510 Problem Set 3 Reminder: Due Monday February 21. Problem sets should be written neatly on 8 1/2 X 11 inch paper without fuzzy left margin because you tore it out of a notebook. Staple multiple sheets. Deposit the papers in the homework box on the bridge between Rhodes and Upson. Please remember to put your section on the paper along with your name. The box will be cleared Monday Feb 21 at noon and at 12:01 no papers will be accepted. Problem sets will be returned during recitation and solutions will be discussed as needed. Solutions will also be posted on blackboard. Reading: Continue browsing in Chapter 4, section 4.4. (1) (a) Suppose brands A and B have consumer loyalties of .7 and .8, meaning that a customer who buys A one week will with probability .7 buy it again the next week, or try the other brand with .3. What is the limiting market share for each of these products? (b) Suppose now there is a third brand with loyalty .9, and that a consumer who changes brands picks one of the other two at random. What is the new limiting market share for these three products....
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- Spring '09
- Markov chain, pij, transition probability matrix, long term frequency