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In an office complex of 1090 employees, on any given day some are at work and the rest are absent. it is known that if an employee is at work today, there is an 81% chance that she will be at work tomorrow, and if the employee is absent today, there is a 61% chance that she will be absent tomorrow.

(a) find the stochastic matrix for this markov chain.
(b) suppose there are 882 employees at work today. the predicted number of employees that will be at work five days from now is:____.
(c) find the steady-state vector.

1 Answer

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Final answer:

The stochastic matrix for the given Markov chain is [[0.81, 0.39], [0.19, 0.61]]. To predict the number of employees at work in five days, one would use this matrix raised to the fifth power, M^5, and apply it to the initial state vector. The steady-state vector is found by solving Mx = x where x sums to 1.

Step-by-step explanation:

To find the stochastic matrix for the Markov chain, we classify the states based on whether an employee is at work or absent. The matrix consists of two probabilities for each state: the probability of an employee being at work tomorrow given that they are at work today, and the probability of them being absent tomorrow given that they're absent today.

  1. The probability of an employee being at work tomorrow if they were at work today is 81%.
  2. The probability of an employee being at work tomorrow if they were absent today is 39% (100% - 61%).
  3. The probability of an employee being absent tomorrow if they were at work today is 19% (100% - 81%).
  4. The probability of an employee being absent tomorrow if they were absent today is 61%.

Thus, the stochastic matrix M is as follows:

M = [
[0.81, 0.39],
[0.19, 0.61]
]

To predict how many employees will be at work five days from now, starting with 882 employees at work today, we use the stochastic matrix raised to the fifth power (M^5) and apply it to the initial state vector (the number of employees at work and absent today).

The steady-state vector is found by solving the equation Mx = x for the vector x, which satisfies the condition that the sum of its components is 1. This vector indicates the long-term proportion of employees at work and absent.

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