In a matrix of transition probabilities (where i equals the row number and j equals the column number),
A)each number represents the conditional probability of being in state j in the next period given that it is currently in the state of i.
B)each number represents the probability that if something is in state i,it will go to state j in the next period.
C)the number in row 3,column 3 represents the probability that something will remain in state 3 from one period to the next.
D)the probabilities are usually determined empirically.
E)All of the above

Question

Quizplus · Accepted Answer

A transition probability matrix is used to describe the probabilities of moving from one state to another in a stochastic process. Each element in the matrix represents the conditional probability of transitioning from state i to state j, including the probability of remaining in the same state. These probabilities are often determined empirically through observation or data analysis.

In a Matrix of Transition Probabilities (Where I Equals the Row