3. [10 marks] An economic study of the job situation in Ottawa has just been completed....

 

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3. [10 marks] An economic study of the job situation in Ottawa has just been completed. The survey shows that jobs in the Ottawa area are currently distributed as follows: 40% in government, 30% in high technology, and 30% in services. The study also includes forecasts of future job distributions, which are based on a Markov chain model of single-year job migration between sectors shown in the following table (table entries are percent). from Government Services High technology Government 85 20 15 to Services 10 60 10 High technology 5 20 75 a) What percent of Ottawa jobs will be in each sector 1, 2, and 3 years from now? b) What is the expected distribution of jobs by sector at steady state? What is expected to happen in the services sector (will it grow or shrink)? 3. [10 marks] An economic study of the job situation in Ottawa has just been completed. The survey shows that jobs in the Ottawa area are currently distributed as follows: 40% in government, 30% in high technology, and 30% in services. The study also includes forecasts of future job distributions, which are based on a Markov chain model of single-year job migration between sectors shown in the following table (table entries are percent). from Government Services High technology Government 85 20 15 to Services 10 60 10 High technology 5 20 75 a) What percent of Ottawa jobs will be in each sector 1, 2, and 3 years from now? b) What is the expected distribution of jobs by sector at steady state? What is expected to happen in the services sector (will it grow or shrink)?

Answer rating: 100% (QA)

a To determine the percent of Ottawa jobs in each sector 1 2 and 3 years from now we will use the Markov chain model and apply the transition probabil... View the full answer