A Markov Chain Has Transition Matrix and Initial-Probability Vector

question 1

Multiple Choice

A Markov chain has transition matrix and initial-probability vector . Find the probability vector for the third stage of the Markov chain. ​

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Definitions:

Bank Account

A financial account maintained by a bank for a customer, allowing the deposit and withdrawal of money and the accrual of interest.

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, per unit of time.

Loanable Funds

The money available for borrowing in the financial markets, determined by the savings behavior of individuals and institutions and the central bank's monetary policy.

Investment Spending

Investment spending refers to expenditures made by businesses or individuals on capital goods intended to be used for future production.