Data collected from selected major metropolitan areas in the eastern United States show that 1% of individuals living within the city limits move to the suburbs during a one-year period, while 3% 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=