In Markov analysis,the likelihood that any system will change from one period to the next is revealed by the
A)cross-elasticities.
B)fundamental matrix.
C)matrix of transition probabilities.
D)vector of state probabilities.
E)state of technology.

Question

Quizplus · Accepted Answer

Markov analysis involves the use of a matrix of transition probabilities, which reflects the likelihood of a system moving from one state to another in the next time period. The fundamental matrix and vector of state probabilities are also key components of Markov analysis, but neither directly reveals the likelihood of system change. The state of technology and cross-elasticities are not directly relevant to Markov analysis.

In Markov Analysis,the Likelihood That Any System Will Change from One