The Following Data Consists of a Matrix of Transition Probabilities

question 78

Essay

The following data consists of a matrix of transition probabilities (P)of Accounting, Economics, Finance, and Management and the count of students in each major.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.It takes two semesters for students to finish taking all four introductory courses.
P = π(0)= (600, 50, 200, 250)
Determine the number of majors in each discipline at the end of two semesters.

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Definitions:

Law Of Supply

A principle stating that, all else being equal, an increase in price results in an increase in quantity supplied.

Law Of Demand

The economic principle that, all else equal, an increase in the price of a good will decrease the quantity demanded, and conversely, a decrease in price will increase the quantity demanded.

Quantity

The amount or number of a material or immaterial entity that is measureable.

Equilibrium Price

The selling price where the amount of products offered is equal to the amount of products consumers want to buy.