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Mathematics, 16.12.2019 19:31 testingawge

Redo exercises 5 and 6 in section 8.3 of your textbook, about the volume of securities sold by a brokerage firm, using the following data: (i) if volume is high this week, then next week it will be high with a probability of 0.8 and low with a probability of 0.2.(ii) if volume is low this week then it will be high next week with a probability of 0.3.the manager estimates that the volume is four times as likely to be high as to be low this week. assume that state 1 is high volume and that state 2 is low volume.(1) find the transition matrix p for this markov chain: (2) find the state vector that represents the manager's estimate(3) using this estimate as the initial state vector, find the state vector for two weeks from now: what is the probability that two weeks from now the volume will be high? (4) again, using the manager's estimate as the initial state vector, find the state vector for three weeks from now: what is the probability that three weeks from now the volume will be high?

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