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Transition Probability Matrix for Markov Chain Analysis

Transition Probability Matrix for Markov Chain Analysis

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Published by Sangita
Transition Probability Matrix for Markov chain Analysis in Excel, step by step
Transition Probability Matrix for Markov chain Analysis in Excel, step by step

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Published by: Sangita on Aug 30, 2009
Copyright:Attribution Non-commercial

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11/04/2012

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the population of a city = 100000Two Milk providing CompanySun CitySuburb1Sun City CompanGainLoss0.650.452Suburb CompanyLossGain0.350.55
Transition Propability Matrix
1Current Year0.650.45
X
0.650.350.550.35
Dr. Sangita
First Year0.580.42Population after first(one) year 
100000
5800042000
100000
2Second Year0.650.45
X
0.580.350.550.420.570.43Population after Second(two) year 
100000
5660043400
100000
3Third Year0.650.45
X
0.570.350.550.430.560.44Population after thirdt(three) year 
100000
5632043680
100000
4..Year0.650.45
X
0.560.350.550.440.560.44Population after …………. year 
100000
5626443736
100000
5..Year0.650.45
X
0.560.350.550.440.560.44Population after …………. year 
100000
56252.843747.2
100000
 
6..Year0.650.45
X
0.560.350.550.440.560.44Population after …………. year 
100000
######
100000
7..Year0.650.45
X
0.560.350.550.440.560.44Population after …………. year 
100000
######
100000
8..Year0.650.45
X
0.560.350.550.440.560.44Population after …………. year 
100000
######
100000
Steady State Vector o
9..Year0.650.45
X
0.56Stable Vector or 
0.350.55
0.44Equillibrium Vector 
(same value of vector multiple)
0.560.44Population after …………. year 
100000
5625043750
100000
10..Year0.650.45
X
0.56
0.350.55
0.44
0.560.44Population after …………. year 
100000
5625043750
100000
Index ma
Direct Computation of Steady State Vector 
0.650.45
-
10.350.5500.650.45
 
0.350.55-0.350.450.35-0.45To conver this matrix as Index matreiR1=R1-0.350.4510R2=R2+R10001

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