(Absorbing Markov Chain) An insurance company wants to make sure they have sufficient
resources to cover patient services for a particular illness. The insurance company makes three
health condition categories for patients with this illness: Died (1), Poor (2), Good (3). The
insurance company has learned that the transition matrix for a one week cycle is:
123
1
2
3
1
0
0
0.08
0.8 0.12
0.02 0.02 0.96]
estin
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, algebra and related others by exploring similar questions and additional content below.
Introduction: MARKOV PROCESS And MARKOV CHAINS // Short Lecture // Linear Algebra; Author: AfterMath;https://www.youtube.com/watch?v=qK-PUTuUSpw;License: Standard Youtube License
Stochastic process and Markov Chain Model | Transition Probability Matrix (TPM); Author: Dr. Harish Garg;https://www.youtube.com/watch?v=sb4jo4P4ZLI;License: Standard YouTube License, CC-BY