A large corporation collected data on the reasons both middle managers and senior managers leave the company. Some managers eventually retire, but others leave the company prior to retirement for personal reasons including more attractive positions with other firms. Assume that the following matrix of one-year transition probabilities applies with the four states of the Markov process being retirement, leaves prior to retirement for personal reasons, stays as a middle manager, stays as a senior manager. Retirement leaves-personal middle manager senior manager retirement 1.00 0.00 0.00 0.00 leaves-personal 0.00 1.00 0.00 0.00 middle manager 0.03 0.07 0.80 0.10 senior manager 0.08 0.01 0.03 0.88 a.What states are considered absorbing states? Why? b.Compute the matrix NR: c. What percentage of the current middle managers will eventually retire from the company?
A large corporation collected data on the reasons both middle managers and senior managers leave the company. Some managers eventually retire, but others leave the company prior to retirement for personal reasons including more attractive positions with other firms. Assume that the following matrix of one-year transition probabilities applies with the four states of the Markov process being retirement, leaves prior to retirement for personal reasons, stays as a middle manager, stays as a senior manager. Retirement leaves-personal middle manager senior manager retirement 1.00 0.00 0.00 0.00 leaves-personal 0.00 1.00 0.00 0.00 middle manager 0.03 0.07 0.80 0.10 senior manager 0.08 0.01 0.03 0.88 a.What states are considered absorbing states? Why? b.Compute the matrix NR: c. What percentage of the current middle managers will eventually retire from the company?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
A large corporation collected data on the reasons both middle managers and senior managers leave the company. Some managers eventually retire, but others leave the company prior to retirement for personal reasons including more attractive positions with other firms. Assume that the following matrix of one-year transition probabilities applies with the four states of the Markov process being retirement, leaves prior to retirement for personal reasons, stays as a middle manager, stays as a senior manager.
| Retirement | leaves-personal | middle manager | senior manager | |
| retirement | 1.00 | 0.00 | 0.00 | 0.00 |
|
leaves-personal |
0.00 | 1.00 | 0.00 | 0.00 |
| middle manager | 0.03 | 0.07 | 0.80 | 0.10 |
| senior manager | 0.08 | 0.01 | 0.03 | 0.88 |
a.What states are considered absorbing states? Why?
b.Compute the matrix NR:
c. What percentage of the current middle managers will eventually retire from the company?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.