4 Suppose that firms in a particular industry fall into one of three size categories: large, medium and small. If a firm is large one year, the probabilities that it will remain large, fall into the medium size category, or become small in the next year are, respectively, 0.7, 0.2 and 0.1. For a firm of medium size, the corresponding probabilities are, respectively, 0.1, 0.8 and 0.1. For a small firm, the probabilities are, respectively, 0, 0.1 and 0.9. (a) Let Ln, Mn and Sn represent the number of firms in each category after n years have elapsed. Express the above information in the matrix equation form Lin Zn+1 = TZn [] (You may wish to draw a network diagram to represent the above situation.) where Zn =

4 Suppose that firms in a particular industry fall into one of three size categories: large, medium and small. If a firm is large one year, the probabilities that it will remain large, fall into the medium size category, or become small in the next year are, respectively, 0.7, 0.2 and 0.1. For a firm of medium size, the corresponding probabilities are, respectively, 0.1, 0.8 and 0.1. For a small firm, the probabilities are, respectively, 0, 0.1 and 0.9. (a) Let Ln, Mn and Sn represent the number of firms in each category after n years have elapsed. Express the above information in the matrix equation form Lin Zn+1 = TZn [] (You may wish to draw a network diagram to represent the above situation.) where Zn =

Holt Mcdougal Larson Pre-algebra: Student Edition 2012

1st Edition

ISBN:9780547587776

Author:HOLT MCDOUGAL

Publisher:HOLT MCDOUGAL

Chapter11: Data Analysis And Probability

Section11.8: Probabilities Of Disjoint And Overlapping Events

Problem 2C

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