Use python code to solve Job Mobility The lawyers at a law firm are either associates or partners. At the end of each year, 30% of the associates leave the firm, 20% are promoted to partner, and 50% remain associates. Also, 10% of the partners leave the firm at the end of each year. Assume that a lawyer who leaves the firm does not return. Draw the transition diagram for this Markov process. Label the states A, P, and L. Set up a stochastic matrix for the Markov process. Find the state of the matrix that changes no more.
Use python code to solve Job Mobility The lawyers at a law firm are either associates or partners. At the end of each year, 30% of the associates leave the firm, 20% are promoted to partner, and 50% remain associates. Also, 10% of the partners leave the firm at the end of each year. Assume that a lawyer who leaves the firm does not return. Draw the transition diagram for this Markov process. Label the states A, P, and L. Set up a stochastic matrix for the Markov process. Find the state of the matrix that changes no more.
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Use python code to solve
Job Mobility The lawyers at a law firm are either associates or partners. At the end of each year, 30% of the associates leave the firm, 20% are promoted to partner, and 50% remain associates. Also, 10% of the partners leave the firm at the end of each year. Assume that a lawyer who leaves the firm does not return.
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Draw the transition diagram for this Markov process. Label the states A, P, and L.
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Set up a stochastic matrix for the Markov process.
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Find the state of the matrix that changes no more.
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In the long run, what percent of the lawyers will be associates?
Expert Solution
Step 1: Algorithm:
- Define the three states: A (associate), P (partner), and L (left the firm).
- Define the stochastic matrix P as a 3x3 matrix with the following transition probabilities:
P[1,1] = 0.5 (probability of remaining an associate)
P[1,2] = 0.2 (probability of becoming a partner)
P[1,3] = 0.3 (probability of leaving the firm)
P[2,1] = 0.1 (probability of demotion to associate)
P[2,2] = 0.9 (probability of remaining a partner)
P[2,3] = 0.0 (probability of leaving the firm)
P[3,1] = 0.0 (no transition from state L)
P[3,2] = 0.0 (no transition from state L)
P[3,3] = 1.0 (absorbing state - probability of staying in state L) - Define the initial state vector x0 as a 3x1 vector with the initial probabilities of being in each state. For example, if initially 80% of lawyers are associates, 10% are partners, and 10% left the firm, then x0 would be [0.8, 0.1, 0.1].
- Multiply the initial state vector x0 by the stochastic matrix P to get the state vector after one year: x1 = x0 @ P.
- Repeat step 4 for as many years as you want to simulate.
- To find the state of the matrix that changes no more, use the matrix_power function in NumPy to raise the matrix P to a large power (e.g., 100) and multiply it by the initial state vector x0: x_stable = np.linalg.matrix_power(P, 100) @ x0.
- The stable state vector x_stable represents the long-run probabilities of being in each state. For example, the percentage of lawyers who will be associates in the long run is given by x_stable[0] * 100.
- Output the results.
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