Question

Can someone explain it with detail explanation?

Two clothing stores in a shopping center compete for the weekend trade. On a clear day the larger store gets 60% of the business and on a rainy day the larger store gets 80% of the business. Either or both stores may hold a sidewalk sale on a given weekend, but the decision must be made a week in advance and in ignorance of the competitor’s plans. If both have a sidewalk sale, each gets 50% of the business. If, however, one holds the sale and the other doesn’t, the one conducting the sale gets 90% of the business on a clear day and 10% on a rainy day. It rains 40% of the time. How frequently should each retailer conduct sales?

Answer 1