Check attached image for questions 5. Consider the following inventory problem. A camera store stocks aParticular model camera that can be ordered weekly. Let D1, D2, . . representthe demand for this camera (the number of units that would be sold if theinventory is not depleted) during the first week, second week,..respectively. It is assumed that the D; are independent and identicallydistributed random variables having a Poisson distribution with a mean of 1.5.Let Xo represent the number of cameras on hand at the outset, X1 the numberof cameras on hand at the end of week 1, X2 the number of cameras on handat the end of week 2, and so on. Assume that Xo = 3. On Saturday night thestore places an order that is delivered in time for the next opening of the storeon Monday. The store uses the following order policy: If there are no camerasin stock, the store orders 3 cameras. However, if there are any cameras instock, no order is placed. Sales are lost when demand exceeds the inventoryon hand. Thus, {Xt} for t = 0, 1, ... is a stochastic process of the form justdescribed. The possible states of the process are the integers 0, 1, 2, 3,representing the possible number of cameras on hand at the end of the week.The random variables X; are dependent and may be evaluated iteratively bythe expressionmax{3 – D+1 , 0} if X; = 0таx{x, — De+1 , 0} if X, 2 1X++1 =for t=0,1,2,...7(a) evaluate the various transition probabilities(b) Obtain the transition matrix for the above problem.

Name: Check attached image for questions 5. Consider the following inventory
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Description: Check attached image for questions 5. Consider the following inventory problem. A camera store stocks aParticular model camera that can be ordered weekly. Let D1, D2, . . representthe demand for this camera (the number of units that would be sold if