The marketing manager of a major grocery store believes that the probability of a customer buying one of the two major brands of toothpaste, Calluge and Crasti, at his store depends on the customer’s most recent purchase. Suppose that the following transition probabilities are appropriate Form To
Calluge Crasti
Calluge 0.8 0.2
Crasti 0.3 0.7

Required:
Draw the two period tree diagram for a customer who last purchased Crasti?