- 25 Marks
QMDDM – OCT 2022 – L2 – Q3 – Digital TV Subscription Transition Analysis
Given a transition matrix for subscribers between Star-Television, Multi-Television, and none, with initial populations, compute the subscriber numbers after 3 years, 5 years, and the long-run equilibrium.
Question
Two competing companies ( Star-Television and Multi-Television) offer digital television service to
a city of 100,000 households. The changes in digital TV subscriptions each year are shown by the
transition matrix P below:
S M None
0.70 0.15 0.15
0.20 0.80 0.15
0.10 0.05 0.70
S
P M
None
The current populations in the three states is
15,000
20,000
65,000
X
.
(a) If P remains the same year after year, find the number of subscribers after
(i) 3 years (ii) 5 years (b) If P remains the same year after year, find the number of subscribers in the long run.
Find Related Questions by Tags, levels, etc.
Report an error
