Transition matrix consists of probabilities of moving between states in a given time period (like 1 year in NCD model)
While in Jump Chain, we only examine the process at the times of transition & time spent in each state is not taken into account.
You'll notice that the main diagonal entries in a Jump Chain matrix are always 0. That's because we're talking about probabilities of going to other states, when a process leaves a particular state.
We can use Jump Chain matrix for calculations where we're asked to find probabilities like -
Say, Probability that process goes to state X before it goes to state Y, and process is currently in some other state.
i.e. where time is not considered.
Have a look at Q8 of last session's UK paper for example.
Last edited by a moderator: Jan 25, 2014