Multiple Choice
A population of 100,000 consumers is grouped as follows: 20,000 users of Brand A, 30,000 users of Brand B, and 50,000 who use neither brand. During any month a Brand A user has a 20% probability of switching to Brand B and a 10% probability of not using either brand. A Brand B user has a 15% probability of switching to Brand A and a 20% probability of not using either brand. A nonuser has a 20% probability of purchasing Brand A and a 25% probability of purchasing Brand B. How many people will be in each group in 1 month?
A) The number of people in each group is as follows: 30,300 users of Brand A, 36,000 users of Brand B, and 33,700 who use neither brand.
B) The number of people in each group is as follows: 41,700 users of Brand A, 28,500 users of Brand B, and 29,800 who use neither brand.
C) The number of people in each group is as follows: 35,500 users of Brand A, 30,300 users of Brand B, and 34,200 who use neither brand.?
D) The number of people in each group is as follows: 28,500 users of Brand A, 36,000 users of Brand B, and 35,500 who use neither brand.
E) The number of people in each group is as follows: 30,300 users of Brand A, 41,700 users of Brand B, and 28,000 who use neither brand.
Correct Answer:

Verified
Correct Answer:
Verified
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