Question: Using this information, model Smalltown's weather as a Markov chain. ( 3 0 pts ) ( 3 0 pts ) Consider an inventory model in
Using this information, model Smalltown's weather as a Markov chain. pts
pts Consider an inventory model in which the replenishment of stock takes place at the end of periods labelled dots, and we assume that the total demand for the single commodity during period is a random variable independent of the time period. Assume that Assume that an policy is used: If the endofperiod stock is less than or equal to then an amount sufficient to increase the quantity of stock on hand up to the level is immediately ordered; otherwise, no new stock is ordered. Assume that Let denote the quantity on hand at the end of period just before restocking. A negative value of is interpreted as an unfilled demand that will be satisfied immediately upon restocking. This is the inventory example we studied in class; recall that is a Markov chain. Draw onestep transition matrix. pts
Consider the mood of an individual is considered as a threestate Markov chain having a transition probability matrix.
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