NAME
MA570
Spring 2020
Stochastic Methods Krigman Quiz #1
ID#
Please show all your work for full credit and
Partial credit will be given when you show your work.
Good luck!
Suppose you have a Markov chain with four possible states {0, 1, 2, 3}. All problems below will deal with different (1 step) transition matrices for those states.
1. Problem (20 pts total). (10 pts) Consider the following (one step) transition matrix:
a) (5 pts) Draw a transition diagram.
b) (5 pts) Indicate how many classes and which states belong to which classes.
c) (5 pts) What is the period of every state in each class?
d) (5 pts) What is the expected number of visits to state =1?
2. Problem (50 pts total). Now, suppose you have values a1 and a2 representing transition probabilities, such that 0