Find the steady state vector for the transition matrix T=
11
3
02
3
.
Suppose that you pay $3 to play a game in which a fair die is rolled. You receive the
number of dollars equal to the number of dots that appear. What is your expected gain (or
loss) on each play?
At the time of purchase of its product, a company offers a contract to its customers that
guarantees the replacement of the product if it malfunctions within a one–year period. The
cost of the contract is $10. The probability that a unit of the product malfunctions within
one year of purchase is 0.06. If the cost to the company for replacement of a unit is $160,
determine the company’s expected gain or loss per contract.
If X0=
1
2
1
2
is an initial state vector for the transition matrix T=
1
51
4
50, compute the state
vector X2.
If a person watches a certain TV daily evening news program on one evening, then the
probability that the person watches that program the next evening is 0.7. However, if the
person does not watch the program one evening, then the probability that the person
watches the program the next evening is 0.2.
(a) If the person watches the program on Monday, what is the probability that the person
watches the program on Wednesday?
(b) If 20% of the population watches the program on Thursday, what percentage can be
expected to watch on Friday?