Table 14-6 The Following Data Consists of a Matrix of Transition Probabilities

question 99

Multiple Choice

Table 14-6
The following data consists of a matrix of transition probabilities (P) of four majors in the College of Business, and the initial proportion of students in each major π(0) .Assume that each state represents a major and the transition probabilities represent changes from one major to the next after taking the introductory class in each discipline.
P =

π(0) = (.4, .3, .2, .1)
-Using the data in Table 14-6, determine Major 2's estimated popularity after students have taken the first introductory course.

• A)0.225
• B)0.305
• C)0.245
• D)0.205

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Definitions:

Collection

The process of pursuing payments of debts owed by customers.

Net Loss

Occurs when total expenses exceed total revenues during a specific period of time, indicating negative profitability.

Liabilities

Financial obligations or debts owed by a company to others, which must be settled over time by transferring economic benefits.

Expenses

The costs incurred in the process of generating revenue, such as rent, utilities, and salaries.