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QUESTION 2 WB and ZA are two competing grocery stores in a particular region. The probability that a customer who shops this week at WB will shop again at WB next week is 78% whereas the probability that a ZA customer will shop next week at ZA is 82%. What is the LONG -TERM Market share of ZA? hint: you need to set up and solve the equation for the steady state probabilities Your answer should be with accuracy of 2 decimal points (do NOT write your answer as a percent)

QUESTION 2 WB and ZA are two competing grocery stores in a particular region. The probability that a customer who shops this week at WB will shop again at WB next week is 78% whereas the probability that a ZA customer will shop next week at ZA is 82%. What is the LONG -TERM Market share of ZA? hint: you need to set up and solve the equation for the steady state probabilities Your answer should be with accuracy of 2 decimal points (do NOT write your answer as a percent)

A First Course in Probability (10th Edition)
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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QUESTION 2 WB and ZA are two compeling grocery stores in a particular region. The probability that a customer who shops this week at WB will shop again at WB next week is 78% whereas the probability that a ZA customer will shop next week at ZA is 82%. What is the LONG -TERM Market share of ZA? hint: you need to set up and solve the equation for the steady state probabilities Your answer should be with accuracy of 2 decimal points (do NOT write your answer as a percent) QUESTION 3 WB 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 an advertising campaign to attract more of ZA's customers to its store. The marketing team at WB believes that their promotional strategy will increase the probability of a ZA customer switching to WB. They calculated that as a result of the advertising campaign, the expected long term market share 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 average profit per customer is $15. What is the maximum that WB should be willing.to pay for the advertising campaign?
Transcribed Image Text:QUESTION 2 WB and ZA are two compeling grocery stores in a particular region. The probability that a customer who shops this week at WB will shop again at WB next week is 78% whereas the probability that a ZA customer will shop next week at ZA is 82%. What is the LONG -TERM Market share of ZA? hint: you need to set up and solve the equation for the steady state probabilities Your answer should be with accuracy of 2 decimal points (do NOT write your answer as a percent) QUESTION 3 WB 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 an advertising campaign to attract more of ZA's customers to its store. The marketing team at WB believes that their promotional strategy will increase the probability of a ZA customer switching to WB. They calculated that as a result of the advertising campaign, the expected long term market share 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 average profit per customer is $15. What is the maximum that WB should be willing.to pay for the advertising campaign?
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