Hello In part iv),as per my understanding third jump is in state C would mean calculating P^4 and looking at the 1st row and 3rd column entry. But the solution states that we need to calculate P^3. Please explain how P^3 instead of P^4 is the solution.
Hello At time 0 the process is in State A. Part (iv) is about where the third jump goes, ie at time 3. This is three transitions or jumps: The first jump is when we go from the state we were in at time 0 (state A) to the state we occupy at time 1 The second jump is when we go from the state we were in at time 1 to the state we occupy at time 2 The third jump is when we go from the state we were in at time 2 to the state we occupy at time 3 As we are dealing with three jumps or transitions, P^3 is the relevant probability transition matrix. Hope this helps Andy
