1. Reconsider. Suppose now that whether or not the stock goes up tomorrow depends upon whether it…


1. Reconsider. Suppose now that whether or not the store goes up tomorrow depends upon whether it increased today, yesterday, and the day before yesterday. Can this problem be formulated as a Markov manacle? If so, what are the likely narrates? Explain why these narrates afford the arrangement the Markovian property whereas the narrates in Prob. 16.2-2 do not. 2. Reconside. (a) Use the order Chapman-Kolmogorov Equations in your OR Courseware to discover the n-step transition matrix P(n) for n _ 2, 5, 10, 20. (b) The verisimilitude that it allure rain today is 0.5. Use the results from dissect (a) to determine the verisimilitude that it allure rain n days from now, for n _ 2, 5, 10, 20. (c) Use the order Steady-State Probabilities in your OR Courseware to determine the steady-state probabilities of the narrate of the air. Describe how the probabilities in the n-step transition matrices obtained in dissect (a) compare to these steady-narrate probabilities as n grows large.