Three brands of beer on sale in the tiny town of Robeeton. The
brand-switching behavior of any customer buying beer in this market next year
is expected to be as follows:
€¢ for a customer who buys beer A in a week, the probability that in the next
week he will buy beer A is 0.90, beer B is 0.06 and beer C is 0.04;
€¢ for a customer who buys beer B in a week, the probability that in the next
week he will buy beer A is 0.12, beer B is 0.78 and beer C is 0.10;
€¢ for a customer who buys beer C in a week, the probability that in the next
week he will buy beer A is 0.09, beer B is 0.07 and beer C is 0.84.

Paul Adam is a customer who bought beer A this week. Sketch below the model
you have set up for Paul Adams beer purchase behavior for the next few
weeks, showing table layout and cell formulas.

Setup a Markov chain as three columns and propagate down as far as you need.
--
Gary''s Student


"gipsassignment" wrote:

Three brands of beer on sale in the tiny town of Robeeton. The
brand-switching behavior of any customer buying beer in this market next year
is expected to be as follows:
€¢ for a customer who buys beer A in a week, the probability that in the next
week he will buy beer A is 0.90, beer B is 0.06 and beer C is 0.04;
€¢ for a customer who buys beer B in a week, the probability that in the next
week he will buy beer A is 0.12, beer B is 0.78 and beer C is 0.10;
€¢ for a customer who buys beer C in a week, the probability that in the next
week he will buy beer A is 0.09, beer B is 0.07 and beer C is 0.84.

Paul Adam is a customer who bought beer A this week. Sketch below the model
you have set up for Paul Adams beer purchase behavior for the next few
weeks, showing table layout and cell formulas.