Determine the probability that a company currently rated A will never be rated B in the future

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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The credit - worthiness of debt issued by companies is assessed at the end of each year by a credit rating agency. The ratings are A ( the most credit - worthy), B and  ( debt defaulted). Historic evidence supports the view that the credit rating can be modelled as a Markov chain with one- year transition matrix:   p= [0.92      0.05      0.03

                                     0.05       0.85     0.1

                                       0          0          1

Determine the probability that a company currently rated A will never be rated B in the future

 

 

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