The following question explores how sequences, series and Markov chains may be used in modelling the number of customers in a commercial setting.
In a town, there are three stores: Aroma, Bodega and Clover.
Ashley is the manager of Aroma. She gathers data to determine whether there is significant movement of customers between the three stores over the course of one year.
She found that:
- 91 % of Aroma customers stayed with Aroma, 5 % moved to Bodega, and 4 % moved to Clover.
- 95 % of Bodega customers stayed with Bodega, 4 % moved to Aroma, and 1 % moved to Clover.
- 92 % of Clover customers stayed with Clover, 6 % moved to Aroma, and 2 % moved to Bodega.
This information is used to form a transition matrix, T.