Which of the Following Is Not an Assumption of Markov

question 41

Multiple Choice

Which of the following is not an assumption of Markov processes?

• A)The state variable is discrete.
• B)There are a limited number of possible states.
• C)The probability of changing states remains the same over time.
• D)We can predict any future state from the previous state and the matrix of transition probabilities.

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Definitions:

Net Present Value

A method used in capital budgeting to analyze the profitability of a projected investment or project by calculating the difference between the present value of cash inflows and outflows.

Present Value Factors

Factors used in discounting future cash flows to determine their present value, helping in the assessment of the value of investments today.

Compound Interest

is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Internal Revenue Code

The Internal Revenue Code refers to the comprehensive set of tax laws and regulations enforced by the United States federal government, covering income, corporate, and estate taxes.