Consider the situation in Exercise 2, point b). Does the steady state probabilities solve the following set of equations? 0.71m + 0.311 + 0.17m = at" 0.2111) + 0.511 + 0.4113 = TF1 m+m+m=1 0 yes Exercise 2: Using certain criteria the stock marked has what could he called a bad day (state 0), an average day (state 1) or a good day (state 2). Let X.. be the state on day a. The process {.Xin : n 0,1,2.3,...} is assumed to he a Markov chain with the following transition matrix, 0.7 0.2 0.1 J\" 0.3 0.5 0.2 0.1 0.4 0.5 and with 0.56 0.28 0.16 1'2: 0.38 0.30 0.23 . 0.24 0.42 0.34 a) Find mx, = 2m, : 0), x. = 1|):3 = ax. : 1), em = 1m. ; 1) and !'(X2| : lIXm : 2). (Wait with point b) below until you have learned about steady state probabilities) b) Find the steady state (equilibrium) equations for this system and solve them. If the system starts in X\" = 0, what is the probability that I'(X,, = '0an : {1) when 1:. becomes large