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Newspaper/Subscription/Movement of customers/Matrix/Exercise

From Wikiversity

The newspapers A,B and C sell subscriptions, and they compete in a local market with 100000 customers. Within a year, one can observe the following movements.

  1. The subscribers of A stick with a percentage of 80% to A, 10% switch to B, 5% switch to C and 5% become nonreaders.
  2. The subscribers of B stick with a percentage of 60% to B, 10% switch to A, 20% switch to C and 10% become nonreaders.
  3. The subscribers of C stick with a percentage of 70% to C, nobody switches to A, 10% switch to B and 20% become nonreaders.
  4. Among the nonreaders, 10% subscribe to A,B or C, the rest remains nonreaders.

a) Establish the matrix that describes the movement of customers within a year.

b) In a certain year, each of the three newspapers has 20000 subscribers and there are 40000 nonreaders. How does the distribution look like after a year?

c) The three newspapers expand to another city, where there are no newspapers at all so far, but also 100000 potential customers. How many subscribers does each newspaper have (and how many nonreaders) after three years, if the same movements hold in the new city?