Stochastic Matrices In Exercise 1-6, determine whether the matrix is stochastic.
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Elementary Linear Algebra
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- A metropolitan area consisting of a city and its suburbs has a constant total population. Suppose that each year, 20% of the people in the city move to the suburbs, whereas 25% of the people in the suburbs move to the city. The transition matrix A for this situation is given. Find the resulting long-term distribution of a constant total population between the city and its suburbs. A = 0.8 0.25 0.2 0.75 The long-term distribution of the population is city, (Simplify your answers.) suburban.arrow_forwardHumidity in Sofia, Bulgaria for 11/05 - 20/05 2023 11/05/2023 12/05/2023 13/05/2023 14/05/2023 15/05/2023 16/05/2023 17/05/2023 18/05/2023 19/05/2023 20/05/2023 62% 72% 61% 73% 73% 70% 66% 61% 60% 64% Calculate and discuss the followings. Please provide the steps for the calculation and highlight the final value. Mean Median Mode Range Standard Deviationarrow_forwardDetermine whether the matrix is a regular stochastic matrix. 0.2 0 0.8 1 A = Is the matrix A a regular stochastic matrix? No, because the columns of A are not probability vectors. No, because there is no power of A that contains only strictly positive entries. Yes, because some power of A contains only strictly positive entries. Yes, because the columns of A are probability vectors.arrow_forward
- An investor is developing a portfolio of stocks. She has identified 3 stocks in which to invest. She wants to earn at least 11% return but with minimum risk. The average return for the stocks is: Annual Return A Average 10.72% 10.68% 11.87% The covariance matrix for the stocks is: A A 0.00009 -0.00009 -0.00011 -0.00009 0.00032 -0.00007 -0.00011 -0.00007 0.00122 Formulate the NLP for this problem by writing the decision variables, objective function and constraints.arrow_forwardHint: The correct answer is 0.40arrow_forwardDetermine whether the Markov chain with matrix of transition probabilities P is absorbing. Explain.arrow_forward
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