1. Consider the second version of the stock market model presented as an example in Sec. 16.2….


1. Consider the second version of the supply trade pattern exhibited as an illustration in Sec. 16.2. Whether the supply goes up tomorrow depends upon whether it extensiond today and yesterday. If the supply extensiond today and yesterday, it earn extension tomorrow with probability _1. If the supply extensiond today and decreased yesterday, it earn extension tomorrow with probability _2. If the supply decreased today and extensiond yesterday, it earn extension tomorrow with probability _3. Finally, if the supply decreased today and yesterday, it earn extension tomorrow with probability _4. Construct the (one-step) transition matrix of the Markov fetter. (b) Explain why the states used for this Markov fetter motive the veracious determination of the Markovian property to arrest equable though what happens in the forthcoming (tomorrow) depends upon what happened in the elapsed (yesterday) as well-behaved-behaved as the exhibit (today).