QUESTION 2WB and ZA are two compeling grocery stores in a particular region. The probability that acustomer who shops this week at WB will shop again at WB next week is 78% whereas theprobability that a ZA customer will shop next week at ZA is 82%. What is the LONG -TERMMarket share of ZA?hint: you need to set up and solve the equation for the steady state probabilitiesYour answer should be with accuracy of 2 decimal points (do NOT write your answer as a percent)QUESTION 3WB and ZA are two competing grocery stores in a particular region.Currently WB holds 40% of the market and ZA holds 60% of the market WB is contemplating anadvertising campaign to attract more of ZA's customers to its store. The marketing team at WBbelieves that their promotional strategy will increase the probability of a ZA customer switching toWB. They calculated that as a result of the advertising campaign, the expected long term marketshare of WB will be 42% and the long term market share of ZA will be 58%.Assume that each week 10,000 shop at one of the stores (either WB or ZA) and that the averageprofit per customer is $15. What is the maximum that WB should be willing.to pay for theadvertising campaign?

Answered: Image /qna-images/answer/8c516551-3458-49e4-9477-4a07338d7739.jpg

Answered: QUESTION 2 WB and ZA are two competing…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

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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Justin has a bird feeder which gets visited by an average of 18 birds every 2 hours during daylight hours. What is the probability that the bird feeder will be visited by more than 5 birds in a 40 minute period during daylight hours? (Round your answer to three decimal places.)
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 80 stocks traded on the NYSE that day showed that 11 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.02α=0.02.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail…
Exhibit 5-10The probability that Pete will catch fish on a particular day when he goes fishing is 0.8. Pete is going fishing 3 days next week. Refer to Exhibit 5-10. The expected number of days Pete will catch fish is?
How are your grades? In a recent semester at a local university, 700 students enrolled in both Statistics I and Psychology I. Of these students, 77 got an A in statistics, 68 got an A in psychology, and 35 got an A in both statistics and psychology. Round the answers to four decimal places, as needed. Part 1 of 2 (a) Find the probability that a randomly chosen student got an A in statistics or psychology or both. The probability that a randomly chosen student got an A in statistics or psychology or both is Part 2 of 2 (b) Find the probability that a randomly chosen student did not get an A in psychology. The probability that a randomly chosen student did not get an A in psychology is X X
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Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 80 stocks traded on the NYSE that day showed that 26 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.002What is the test statistic for this sample? (Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail to…
Suppose a weather report indicates that the probability of rain this week is 0.20. This week Next week According to the report, if it rains this week, then the probability of rain next Rain week is 0.33. If it does not rain this week, then the probability of rain next week is 0.17. The tree diagram models this weather report. 0.33 Rain 0.20 Determine the probability that it will not rain for the next two weeks. Express 0.67 No rain your answer as a decimal precise to two decimal places. Rain 0.17 probability = 0.80 No rain 0.83 No rain
edo exercises 17 and 18 in section 8.1 of your textbook, about the small animal who lives in an area with woods and meadows, using the following data:If the animal is in the woods on one observation, then it is twice as likely to be in the woods as the meadows on the next observation. If the animal is in the meadows on one observation, then it is three times as likely to be in the meadows as the woods on the next observation.Assume that state 1 is being in the meadows and that state 2 is being in the woods.(1) Find the transition matrix for this Markov process. (2) If the animal is initially in the woods, what is the probability that it is in the woods on the next three observations? (3) If the animal is initially in the woods, what is the probability that it is in the meadow on the next three observations?
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Side-by-Side The battery manufacturer Varta sells a car battery with 800 Find the probability that 9 or fewer cars will start. cold-cranking amps and advertises great performance even in bitterly cold weather. Varta claims that after sitting on a (Use decimal notation. Use Appendix Table 1. Give your answer to four decimal places.) frozen Minnesota lake for 10 days at temperatures below 32°F, this battery will still have enough power to start a car. Suppose the actual probability of starting a car following this experiment is 0.75, and 15 randomly selected cars probability: (equipped with this battery) are subjected to these grueling conditions.

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