In a population of 100,000 consumers, there are 20,000 users of Brand A, 30,000 users of Brand B, and 50,000 who use neither brand. During any month, a Brand A user has a 20% probability of switching to Brand B and a 5% probability of not using either brand. A Brand B user has a 15% probability of switching to Brand A and a 10% probability of not using either brand. A nonuser has a 10% probability of purchasing Brand A and a 15% probability of purchasing Brand B. How many people will be in each group (a) in 1 month, (b) in 2 months, and (c) in 18 months?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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In a population of 100,000 consumers, there are 20,000 users of Brand A, 30,000 users of Brand B, and 50,000 who use neither brand. During any month, a Brand A user has a 20% probability of switching to Brand B and a 5% probability of not using either brand. A Brand B user has a 15% probability of switching to Brand A and a 10% probability of not using either brand. A nonuser has a 10% probability of purchasing Brand A and a 15% probability of purchasing Brand B. How many people will be in each group (a) in 1 month, (b) in 2 months, and (c) in 18 months?

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