Joe Isley,the owner of Big I HiFi,believes that the store's inventory can be modeled as a Markov process.If items are either classified as in stock,out of stock,discontinued from stock or put on clearance sale,then the following transition matrix has been estimated:
a. Rewrite the transition matrix for the problem in the form of I, O, R, and Q submatrices.
b. Compute the fundamental matrix for this problem.
c. What is the probability of an item currently in stock being out of stock in two months?
d. What is the probability of an item currently out of stock eventually being discontinued from stock?

Question

Joe Isley,the owner of Big I HiFi,believes that the store's inventory can be modeled as a Markov process.If items are either classified as in stock,out of stock,discontinued from stock or put on clearance sale,then the following transition matrix has been estimated:  
a. Rewrite the transition matrix for the problem in the form of I, O, R, and Q submatrices.
b. Compute the fundamental matrix for this problem.
c. What is the probability of an item currently in stock being out of stock in two months?
d. What is the probability of an item currently out of stock eventually being discontinued from stock?

Quizplus · Accepted Answer

The Answer of Joe Isley,the owner of Big I HiFi,believes that the store's inventory can be modeled as a Markov process.If items are either classified as in stock,out of stock,discontinued from stock or put on clearance sale,then the following transition matrix has been estimated:  
a. Rewrite the transition matrix for the problem in the form of I, O, R, and Q submatrices.
b. Compute the fundamental matrix for this problem.
c. What is the probability of an item currently in stock being out of stock in two months?
d. What is the probability of an item currently out of stock eventually being discontinued from stock?

Joe Isley,the Owner of Big I HiFi,believes That the Store's