Hello Everyone I have doubt in the solution to part (i) & (iii) of the above question. If we have one snake yesterday, probability of no sale is 0.4 and probability of one sale is also 0.4. Then shouldn't it means that probability of having 4 snakes today is 0.4 which is equal to probability of sale of the one snake we had yesterday? In solution they have evaluated it as 1 - Probability of no sale which i feel is not correct as we cant sale 2 snakes out of 1. Also evaluating this probability at 0.4 will invalidate the result of having sum of transition probability equal to 1. Please guide on it. Early response would be highly appreciated
I think the mention of 'if stock is sufficient' is the catch here. The probability of 1 sale will be equal to 0.4 and probability of 2 sales will be equal to 0.2 if and only if 2 snakes are available for selling. Since in this case, we have only 1 snake, the probability of 1 sale automatically changes to 0.6
