Question 1
29 marks
Customers moving between three stores: Markov chains, then arithmetic and geometric models
- Number and algebra
(a)
3 marks
With columns for Aroma, Bodega and Clover (the stores customers start in) and rows for where they go:
(b)
4 marks
After 5 years use , and read the entry for Clover customers who end up at Aroma (row 1, column 3).
(c)
2 marks
Raise to a high power, or find the eigenvector for eigenvalue 1, scaled so the entries add to 1.
(d)
1 mark
In the long term, the proportion of customers who are at Aroma is the first entry.
(e)
3 marks
- Raise the entry for Clover to Aroma (and lower the entry for Clover staying by the same amount) until the steady state for Aroma is at least 0.40.
- With 12%: steady state , which is below 0.40. With 13%, the matrix is and the steady state is
- The first entry is at least 0.40. The minimum integer is 13%.
(f)
2 marks
Bodega's long-term share goes up from 0.432 to 0.459 when more Clover customers move to Aroma, so Bodega's manager would benefit.
(g)
1 mark
It takes many years for the steady state to be reached. During that time a new store could open or one store could change its advertising, so the percentages would change.
(h)
2 marks
Model 1 is an arithmetic sequence with and .
(i)
2 marks
In week 5 the number is . In week 6 the number of new customers is 12% more than the 30 new customers of the week before.
(j)
3 marks
The new customers each week form a geometric sequence after week 5. By week 10 there have been five more weeks.
(k)
6 marks
- Model 1 in week is . Model 2 in week is .
- Make a table of values. In week 17, the models give 1080 and 1531 (a difference of 451). In week 18 they give 1110 and 1662 (a difference of 552).

