Consider the Transition Matrix The Steady-State Probability of Being in State 1 Is Approximately

question 30

Multiple Choice

Consider the transition matrix:
$\begin{array} { l } \left| \begin{array} { l l l } .3 & .2&.5\end{array} \right| \\\quad\quad\begin{array} { l l l } \mid.1 & .6 & .3 \mid\\ \mid .2 & .3 & .5\mid \end{array} \\\end{array}$
The steady-state probability of being in state 1 is approximately:

• A).177
• B).231
• C).300
• D).403

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Definitions:

Yearly Income

The total amount of money earned or received over one year.

SST

SST stands for Sum of Squares Total, a term used in statistics to describe the total variation within a dataset.

Determination

In the context of statistical analysis, often refers to the degree of variance in observations explained by the model, usually in the form of the coefficient of determination (R-squared).

Estimated Regression Equation

An equation that estimates the relationship between dependent and independent variables in a regression model.