CAS Exam MAS-I Spring 2018, Question 11

Study guide: Exam MAS-I

You are given the following information about a homogenous Markov chain:

• P = \begin{bmatrix} u & v & 0 \\ 1/3 & 1/3 & w \\ x & y & z \end{bmatrix}
• The limiting probabilities of all three states are equal.

Calculate z.

• A) Less than 0.35
• B) At least 0.35, but less than 0.45
• C) At least 0.45, but less than 0.55
• D) At least 0.55, but less than 0.65
• E) At least 0.65

Answer this question and see the worked solution

Concepts tested

• Markov Chain
• Stationary Distribution
• Transition Probability Matrix

More questions from this set

• CAS Exam MAS-I Spring 2018, Question 10
• CAS Exam MAS-I Spring 2018, Question 12