Let the process of getting through undergraduate school be a homogeneous Markov
process with time unit one year. The states are Freshman, Sophomore, Junior, Senior,
Graduated, and Dropout. Your class (Freshman through Graduated) can only stay the
same or increase by one step, but you can drop out at any time before graduation. You
cannot drop back in. The probability of a Freshman being promoted in a given year is .8;
of a Sophomore, .85; of a Junior, .9, and of a Senior graduating is .95. The probability of
a Freshman dropping out is .10, of a Sophomore, .07; of a Junior, .04; and of a Senior,
.02.
1. Construct the Markov transition matrix for this process.
2. If we were more realistic, and allowed for students dropping back in, this would no
longer be a Markov process. Why not?
3. Construct the Markov transition matrix for what happens to students in four years.
What is the probability that a student who starts out as a Junior will graduate in that
time?
I want to know how to do these problems more than the answers. Explanations required, as well as step by step instructions. 1 and 2 I'm confident about but I'm unsure about 3. Again I want the process to the solution more than the answer.
2. I said summing drop in data in the rows would give a number greater than 1
3. I got around .932 because P2*P=P3 (three years).
If I'm wrong tell me why please. Thanks!