By reviewing its donation records, the alumni office of a college finds that 80% of its...

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By reviewing its donation records, the alumni office of a college finds that 80% of its alumni who contribute to the annual fund one year will also contribute the next year, and 30% of those who do not contribute one year will contribute the next. This can be viewed as a Markov chain with two states: state 1 corresponds to an alumnus giving a donation in any one year, and state 2 corresponds to the alumnus not giving a donation in that year. The transition matrix of the Markov chains is P = [0.8 0.31 (0.2 0.71 Find its steady-state vector of the transition matrix and interpret you're your answer. By reviewing its donation records, the alumni office of a college finds that 80% of its alumni who contribute to the annual fund one year will also contribute the next year, and 30% of those who do not contribute one year will contribute the next. This can be viewed as a Markov chain with two states: state 1 corresponds to an alumnus giving a donation in any one year, and state 2 corresponds to the alumnus not giving a donation in that year. The transition matrix of the Markov chains is P = [0.8 0.31 (0.2 0.71 Find its steady-state vector of the transition matrix and interpret you're your answer.

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To find the steadystate vector of the transition matrix we need to solve for the vector such that ... View the full answer