OR-Notes are a series of introductory notes on topics that fall under the broad heading of the field of operations research (OR). They were originally used by me in an introductory OR course I give at Imperial College. They are now available for use by any students and teachers interested in OR subject to the following conditions.
A full list of the topics available in OR-Notes can be found here.
Research done by the Gulf Oil Corporation produced the following matrix of probabilities that a person with one form of central heating would switch to another within a year.
Will switch to Oil Gas Electric Currently has Oil | .825 .175 0 | Gas | .060 .919 .021 | Electric | .049 0 .951 |
If the current (year one) market share is
Oil 26%, Gas 60% and Electric 14% then:
In two years time a rival company is believed to be going to introduce cheaper oil for domestic heating. It is estimated that this will change the probabilities for switching to:
Will switch to Oil Gas Electric Currently has Oil | .930 .070 0 | Gas | .070 .910 .020 | Electric | .090 .020 .890 |