Given the information listed in table 14.1, suppose that 1,000 individuals are in the poor health state in period t and ?PG is 0.45, ?PP is 0.40, and ?PD is 0.15 without the drug. With the drug, the probabilities are 0.65, 0.30, and 0.05, respectively. Compute the number of persons in each health state over three years if people do not take the drug. Similarly, compute the number of persons in each health state over three years if people take the drug.

Table 14A No-byThree Transition Matrix Health Status in Year I Health Status in Year I + 1 Good Poor Probability in Year I + 1 Good 0a; an; 9-6 PM! 03p app 0. p Dead 0m em 9-0 Pmbability In year t on. 31