Q&A Part 1, Q1.23

Discussion in 'CT4' started by studentactuary15, Feb 24, 2018.

  1. studentactuary15

    studentactuary15 Active Member

    If say the number of chapters is a small number like 4, then what would the transition matrix look like?

    Just confused on if after doing chapter, say 3, does he have the option to redo chapter 1 or 2? And it seems like that moving from the penultimate chapter to the final chapter is 100% probability which doesn't make sense to me. Why can't he redo a chapter after doing the final one... It doesn't specify in the question.

    A transition matrix for 4 chapters would help me understand.
     
  2. Varsha Agarwal

    Varsha Agarwal Very Active Member

    For example total no of chap is 4.
    state space : {0,1,2,3,4} Probability of moving from 0 to 1, 1 to 2,2 to 3 ,3 to 4 is 0.75. And that of 0 to 0,1 to 2,2 to 2 ,3 to 3 is 0.25.
    But 4 to 4 is 1 becz even if he redo the final chapter,he will have probability 1 of completing the last chapter and not going back to one less chapter which is already finished.
    Transition matrix for 4 chapters will have 0.25 and 0.75 in first four rows (0,1,2,3) and last row will have 1 probability of going from state 4 to 4.
     

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