A rural community has two television stations, and on Saturday night the local viewers watch either the ‘Saturday Movie’ or the ‘Magic Show’. The following transition matrix contains the probabilities of a viewers watching one of the shows in a week, given that she had watched a particular show the preceding week.
This week Next week
Movie Magic
Movie 0.75 0.25
Magic 0.45 0.55
a) Given that a local viewer watched ‘Magic Show’ this week, use a decision tree to determine the probability that she will watch ‘Saturday Movie’ in week 4.
b) Determine the steady state probabilities.
c) If the community contains 1200 television sets, how many will turned to each show in the long run?
d) If a prospective local sponsor wanted to pay for commercial time on one of the shows, which show would more likely be selected? Explain.
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