19 The personal computer industry is very fast moving, and technology provides motivation for customers to upgrade with new computers every few years. Brand loyalty is very important, and companies try to do things to keep their customers happy. How- ever, some current customers will switch to a dif- ferent company. Three particular brands–Doorway, Bell, and Kumpaq-hold the major shares of the market. People who own Doorway computers will buy another Doorway 80% of the time, while the rest will switch to the other companies in equal pro- portions. Owners of Bell computers will buy Bell again 90% of the time, while 5% will buy Door- way and 5% will buy Kumpaq. About 70% of the Kumpaq owners will make Kumpaq their next pur- chase while 20% will buy Doorway and the rest will buy Bell. If each brand currently has 200,000 customers who plan to buy a new computer in the next year, how many computers of each type will be purchased?

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19 The personal computer industry is very fast moving,
and technology provides motivation for customers
to upgrade with new computers every few years.
Brand loyalty is very important, and companies try
to do things to keep their customers happy. How-
ever, some current customers will switch to a dif-
ferent company. Three particular brands-Doorway,
Bell, and Kumpaq-hold the major shares of the
market. People who own Doorway computers will
buy another Doorway 80% of the time, while the
rest will switch to the other companies in equal pro-
portions. Owners of Bell computers will buy Bell
again 90% of the time, while 5% will buy Door-
way and 5% will buy Kumpaq. About 70% of the
Kumpaq owners will make Kumpaq their next pur-
chase while 20% will buy Doorway and the rest
will buy Bell. If each brand currently has 200,000
customers who plan to buy a new computer in the
next year, how many computers of each type will be
purchased?
20 In Section 6, we investigated an accounts receivable
problem. How would the paid category and the bad
debt category change with the following matrix of
transition probabilities?
1
1
0 0
P =
0.7
0.2
0.1
0.4
0.2
0.2
0.2
Transcribed Image Text:19 The personal computer industry is very fast moving, and technology provides motivation for customers to upgrade with new computers every few years. Brand loyalty is very important, and companies try to do things to keep their customers happy. How- ever, some current customers will switch to a dif- ferent company. Three particular brands-Doorway, Bell, and Kumpaq-hold the major shares of the market. People who own Doorway computers will buy another Doorway 80% of the time, while the rest will switch to the other companies in equal pro- portions. Owners of Bell computers will buy Bell again 90% of the time, while 5% will buy Door- way and 5% will buy Kumpaq. About 70% of the Kumpaq owners will make Kumpaq their next pur- chase while 20% will buy Doorway and the rest will buy Bell. If each brand currently has 200,000 customers who plan to buy a new computer in the next year, how many computers of each type will be purchased? 20 In Section 6, we investigated an accounts receivable problem. How would the paid category and the bad debt category change with the following matrix of transition probabilities? 1 1 0 0 P = 0.7 0.2 0.1 0.4 0.2 0.2 0.2
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