Write a script that works with 5 5 states, and: Constructs a random matrix, and normalizes each
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Question:
Write a script that works with 5 states, and:
Constructs a random matrix, and normalizes each row so that it is a transition matrix.
Starts from a random (normalized) probability distribution 0
and takes 50 steps =>50
Computes the stationary distribution
: the normalized eigenvector of
with eigenvalue 1(numerically: closest to 1)
Checks if 50
and
are equal to tolerance 0.001
Related Book For
Economics of Strategy
ISBN: 978-1118319185
6th edition
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
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