Why might a movie streaming service (like Netflix or Vudu) want to know the distribution of television resolutions? How would they use the data?
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Bing | |||
Bing | 0.40 | 0.60 | |
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0.20 | 0.80 |
Hint: This problem involves a Markov chain, as discussed in the reading. Though the reading does not contain a "worked example", you should be able to figure out how to do the calculations. To get started, let B_1 and G_1 denote the market shares for Bing and Google on day 1. Further, let P\{\mbox{B to B}\} denote the probability that a user "switches" from Bing to Bing (i.e., staying with Bing), P\{\mbox{B to G}\} denote the probability that a user switches from Bing to Google, P\{\mbox{G to B}\} denote the probability that a user switches from Google to Bing, and P\{\mbox{G to G}\} denote the probability that a user stays with Google. You need to calculate B_2 and G_2 (i.e., the shares on day 2) from B_1, G_1 and these transition probabilities?
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