All Entries in a Matrix of Transition Probabilities Sum to 1

question 4

True/False

All entries in a matrix of transition probabilities sum to 1.

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Definitions:

Group Plan

A type of insurance policy or benefits system that covers multiple individuals, typically employees of a company or members of an organization, under one contract.

Prospective Payment System

A healthcare payment system used by Medicare in which hospitals and other providers are paid a predetermined fixed amount for each inpatient stay or service rendered, based on the expected costs of care.

Predetermined

Established or decided in advance, often before relevant events or actions occur.

Fixed Amount

A specific, predetermined sum of money, often referring to payments or financial obligations that do not vary.