Hi In part ii) of question 7 of CT4,I didn't understand why the second order matrix and the second row has been used to calculate the required probability. Please explain.
Hello We are considering the transitions from the first week to the third week. This is two transitions (week 1 -> week 2 -> week 3) and so we consider the square of the transition matrix for the two-step transition probabilities. We are told that Brenda had the most sales in the first week so the MC starts in the state 'Brenda' and the relevant two-step transition probabilities from Brenda to the other states are in the second row. Hope this helps Andy
