A what fraction of the bikes are at the three

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Unformatted text preview: ) with probability 0.6. When he misses he is more conservative the next time and hits (H) with probability 0.7, misses (M) with probability 0.3. (a) Write the transition probability for the two state Markov chain with state space {H, M }. (b) Find the long-run fraction of time he hits a shot. 1.26. Folk wisdom holds that in Ithaca in the summer it rains 1/3 of the time, but a rainy day is followed by a second one with probability 1/2. Suppose that Ithaca weather is a Markov chain. What is its transition probability? Chains with three or more states 1.27. (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 pr...
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This document was uploaded on 03/06/2014 for the course MATH 4740 at Cornell University (Engineering School).

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