Hi, I am struggling with part i of this question - could anyone please assist? In the solutions it says that pi =(1-2a,a,a). Could someone please explain where this comes from? Thanks
Hello This is because we're told that the long-term probability of being in the 15% state is the same as the long-term probability of being in the 40% state. So the stationary distribution must be of the form (something, a, a) where a represents the long-term probability of being in the 15% or 40% states. As the probabilities must sum to 1, the first entry has to be 1-2a. Hope this helps! Andy
