Equilibrium state probabilities may be estimated by using Markov analysis for a large number of periods.

Question

Quizplus · Accepted Answer

Equilibrium state probabilities can be estimated by using Markov analysis for a large number of periods, as Markov analysis is used to model and analyze the evolution of a system over time. As the number of periods increases, the system approaches a steady state or equilibrium, where the probabilities of being in each state remain constant. Therefore, over a large number of periods, the estimated probabilities will converge to the actual equilibrium state probabilities.

Equilibrium State Probabilities May Be Estimated by Using Markov Analysis