Data collected from selected major metropolitan areas in the eastern United States show that 3% of individuals living within the city limits move to the suburbs during a one-year period, while 1% of individuals living in the suburbs move to the city during a one-year period. Answer the following questions assuming that this process is modeled by a Markov process with two states: city and suburbs.

(a)

Prepare the matrix of transition probabilities.

	To
From	City	Suburbs
City
Suburbs

(b)

Compute the steady-state probabilities. (Enter your probabilities as fractions.)

City₁=Suburbs₂=

(c)

In a particular metropolitan area, 40% of the population lives in the city, and 60% of the population lives in the suburbs. What population changes do your steady-state probabilities project for this metropolitan area?

The area will show ---Select--- increase decrease in the city population and ---Select--- increase decrease in the suburb population.

Data collected from selected major metropolitan areas in the eastern United States show that 3% of individuals living within the city limits move to the suburbs during a one-year period, while 1% of individuals living in the suburbs move to the city during a one-year period. Answer the following questions assuming that this process is modeled by a Markov process with two states: city and suburbs. (a) Prepare the matrix of transition probabilities. (b) Compute the steady-state probabilities. (Enter your probabilities as fractions.) City 1= Suburbs 2= (c) In a particular metropolitan area, 40% of the population lives in the city, and 60% of the population lives in the suburbs. What population changes do your steady-state probabilities project for this metropolitan area? The area will show in the city population and in the suburb population