Hi In part v) of CT4 Oct 2011 Q8,why cant the concept explained in Section 8 -Expected time to reach state k starting from i (mi) of Ch4 be used here.Ps explainwhat is the difference btw this concept and what this ques is asking.
Hi The question is asking for an adaptation of the approach you mention "expected time to reach a state k". Parts (iii) and (iv) of this question consider the next jump, and what this means for the probability of ever reaching state P, allowing us to set up expressions for F(A) and F(T). This is similar to how we set up expressions for mH and mS in the HSD model. Part (v) combines this with our knowledge of waiting times, allowing us to say that the expected time spent in state P is the expected waiting time in state P multiplied by the probability of getting there. We can't use the method you mention unadjusted since it answers a slightly different question, but parts (iii) onwards of this question are adapting that method to solve the problem stated. Is that OK? Dave
