What is a Markov Chain? a) A statistical technique used for regression analysis b) A sequence of events where the probability of each event depends only on the state of the previous event c) A method for time series forecasting d) A type of non-linear programming In an auto insurance Markov Chain model, what could be a possible state? a) The type of car insured b) The time of day c) The number of accidents in the past year d) The average temperature If the states in an auto insurance Markov Chain are "No Accident" and Accident," and the transition probabilities are 0.9 and 0.1, respectively, what does the transition probability 0.9 represent? a) The probability of having two accidents b) The probability of having no accidents c) The probability of transitioning from "No Accident" to " Accident" d) The probability of transitioning from "Accident" to "No Accident" If a two-step Markov Chain has states A, B, and C, and the transition probability from A to B is 0.6, and from B to C is 0.4, what is the probability of transitioning from A to C in two steps? a) 0.24 b) 0.16 c) 0.36 d) 0.8 . In a one-step Markov Chain, what is the sum of the transition probabilities for a given state? a) 1 b) 0 c) 0.5 d) It varies depending on the number of states