Southside College Has Modeled Its Student Loan Program as a Markov

question 13

Short Answer

Southside College has modeled its student loan program as a Markov process.Each year a student with a prior loan borrows again,defers repayment for a year,makes payments,pays the loan balance in full,or defaults on repayment.The transition matrix is as follows:
a. If currently a student is making payments on his/her loan, what is the probability the loan will be paid in full eventually?
b. Is the probability of eventually defaulting greater for a student who is currently borrowing more or a student who is making payments?
c. What is the probability a student who is borrowing this year will repay the loan balance in full in two years or less?

---

Definitions:

Workplace Safety

Refers to the prevention of injury and health hazards for employees within the workplace through adherence to safety standards and practices.

Disabilities

Conditions that may impair, limit, or restrict an individual's physical, mental, or social abilities, often necessitating accommodations or support.

OSHA

The Occupational Safety and Health Administration, a U.S. government agency responsible for ensuring safe and healthy working conditions.

Medical Treatment

Professional care, therapy, or medication given to relieve, manage, or cure health conditions or injuries.