Question: Please show the work thank you ! Problem 5.4 The state of the economy is modeled by a Markov chain (Xn)n;0 with state space 8

Please show the work thank you !

Problem 5.4 The state of the economy is modeled by a Markov chain (Xn)n;0 with state space 8 = {1,2,3} E {Recession, Growth, Recovery}. The corresponding transition probability matrix is 1/4 0 3/4 P = 0 1/2 1/2 2/3 1/3 0 If today the economy is recovering, determine the most likely state of the economy (1) two years from now; (ii) ve years from now

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