Hi all I am having a doubt in part(i) of this question from Revision Notes. Here, we need to write down the transition matrix in part(i). I just didn't get the p14 (entry of first row and fourth column) in it. Why it is 0.6? My understanding is that if we have only 1 snake in the stock previous day and 4 snakes next day, that would mean that we have sold that one snake and gave an order of four more snakes at the end of previous day. Then the prob. of selling one snake is 0.4 , so why it is given as 0.6? Please anyone help. Thank You
