Suppose in a small town named Oshiland there are three places to eat, a Chinese restaurant, a Mexican restaurant, and a pizza place. Everyone in town eats dinner in one of these places or has dinner at home. Assume that 20% of those who eat in the Chinese restaurant go to Mexican next time, 20% eat home and 30% go to the pizza place. From those who eat in the Mexican restaurant, 10% go to the pizza place, 25% go to the Chinese restaurant, and 25% eats at home next time. From those who eat at the pizza place, 30% eat at home, 30% eat at the Chinese restaurant, and 10% eat at the Mexican restaurant next time. Those who eat at home, 20% go to the Chinese restaurant, 25% go to Mexican restaurant, and 30% to the pizza place. a. Set us the matrix of transition probabilities. b. Find the steady state probabilities. c. In the long run, which restaurant will have the most customers?
Suppose in a small town named Oshiland there are three places to eat, a Chinese restaurant, a Mexican restaurant, and a pizza place. Everyone in town eats dinner in one of these places or has dinner at home. Assume that 20% of those who eat in the Chinese restaurant go to Mexican next time, 20% eat home and 30% go to the pizza place. From those who eat in the Mexican restaurant, 10% go to the pizza place, 25% go to the Chinese restaurant, and 25% eats at home next time. From those who eat at the pizza place, 30% eat at home, 30% eat at the Chinese restaurant, and 10% eat at the Mexican restaurant next time. Those who eat at home, 20% go to the Chinese restaurant, 25% go to Mexican restaurant, and 30% to the pizza place.
a. Set us the matrix of transition probabilities.
b. Find the steady state probabilities.
c. In the long run, which restaurant will have the most customers?
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
