There is a 30% chance that any current client of company A will switch to company B this year. There is a 40% chance that any client of company B will switch to company A this year
If these probabilities are stable over the years, and if company A has 500 clients and company B has 300 clients,
(a) how many clients will each company have next year?
(b) how many clients will each company have in two years?
(a) Company A will have 470; Company B will have 330.
(b) Company A will have 461; Company B will have 339.
You might also like to view...
The purpose of a penetration pricing strategy during the introduction stage of the product life cycle is to:
A) maximize profits. B) build market share and a broader market. C) build customer loyalty. D) enhance the brand image.
If a corporation grants a stock option to an employee on July 1, 2010, that allows the employee to purchase stock at a price substantially below the stock's fair value at July 1, 2010, an element of compensation expense should be recorded on the corporation's books
Indicate whether the statement is true or false
When implementing tools and technology ____.
A. it is better to implement technology as a one-time cost so that the service desk doesn't exceed its budget and have to ask for a variance B. organizations should strive to implement the most sophisticated technology that their budgets will allow so customers will be more productive C. it is more important to get the technology installed properly than to define the roles of the people who will be using it D. ongoing maintenance activities, such as installing upgrades and additional memory, and training must be performed in a timely fashion
Strikers, Inc. sells soccer goals to customers over the Internet. History has shown that 2% of Strikers' goals will need repair under the warranty program. For the year, Strikers has sold 4,000 goals and 45 have been repaired. If the estimated cost to repair a goal is $200, what would be the warranty expense for the year?
A. $0. B. $7,000. C. $9,000. D. $16,000.