Q18. Suppose M is a stochastic matrix representing the probabilities of transitions each day. Compute the matrix of compounded transition probabilities for 2 days into the future, or M². (Note, prior to multiplying matrices, the given components of M must be used to fill in the missing component [**] such that M is a stochastic matrix.)

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**Question 18**: Suppose \( M \) is a stochastic matrix representing the probabilities of transitions each day. Compute the matrix of compounded transition probabilities for 2 days into the future, or \( M^2 \). (Note, prior to multiplying matrices, the given components of \( M \) must be used to fill in the missing component \([**]\) such that \( M \) is a stochastic matrix.)

\[
M = \begin{bmatrix}
0.80 & 0.07 & 0.35 \\
0.14 & 0.70 & 0.41 \\
0.06 & ** & 0.24
\end{bmatrix}
\]

What is \( m_{32} \) in the matrix \( M^2 \)? (Round to 3 decimal places.)
Transcribed Image Text:**Question 18**: Suppose \( M \) is a stochastic matrix representing the probabilities of transitions each day. Compute the matrix of compounded transition probabilities for 2 days into the future, or \( M^2 \). (Note, prior to multiplying matrices, the given components of \( M \) must be used to fill in the missing component \([**]\) such that \( M \) is a stochastic matrix.) \[ M = \begin{bmatrix} 0.80 & 0.07 & 0.35 \\ 0.14 & 0.70 & 0.41 \\ 0.06 & ** & 0.24 \end{bmatrix} \] What is \( m_{32} \) in the matrix \( M^2 \)? (Round to 3 decimal places.)
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