Suppose that in any given period an unemployed person will find a job with probability 0.7 and will therefore remain unemployed with a probability of 0.3. Additionally, persons who find themselves employed in any given period may lose their job with a probability of 0.1 (and will have a 0.9 probability of remaining employed). Write out the Markov system of difference equations for this economy. Compute the stationary distributions.
Suppose that in any given period an unemployed person will find a job with probability 0.7 and will therefore remain unemployed with a probability of 0.3. Additionally, persons who find themselves employed in any given period may lose their job with a probability of 0.1 (and will have a 0.9 probability of remaining employed). Write out the Markov system of difference equations for this economy. Compute the stationary distributions.
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter3: Matrices
Section3.7: Applications
Problem 12EQ:
12. Robots have been programmed to traverse the maze shown in Figure 3.28 and at each junction...
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