A firm in Eskiehir has a large sheep farm in which domestic sheep are bred for...

 

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A firm in Eskişehir has a large sheep farm in which domestic sheep are bred for their meat and peltry. Each year, 30% of the newborn sheep; 40% of the one-year-old sheep and 100% of the two- year-old sheep are slaughtered. The firm's policy is to breed its own newborn sheep to meet the market demand: that is, the firm does not purchase one-year-old or two-year-old sheep. For this purpose, the supply chain department the firm determined that to meet the steady demands of the market, 12000 newborn sheep must be added to the farm at the beginning of a typical year. It is also known that the cost of breeding a newborn sheep is a normal random variable with mean 300 TL and standard deviation 35 TL, a one-year-old sheep is a normal random variable with mean 210 TL and standard deviation 30 TL, and a two-year-old sheep is a normal random variable with mean 240 TL and standard deviation 25 TL. a) Construct the Markov chain that is suitable to express the above-mentioned process b) Is the Markov chain you constructed in part (a) absorbing? Explain in detail. c) What is the expected breeding cost for this farm in a typical year? (Assume that the annual breeding cost is determined based on the number of sheep on hand at the beginning of that year.) A firm in Eskişehir has a large sheep farm in which domestic sheep are bred for their meat and peltry. Each year, 30% of the newborn sheep; 40% of the one-year-old sheep and 100% of the two- year-old sheep are slaughtered. The firm's policy is to breed its own newborn sheep to meet the market demand: that is, the firm does not purchase one-year-old or two-year-old sheep. For this purpose, the supply chain department the firm determined that to meet the steady demands of the market, 12000 newborn sheep must be added to the farm at the beginning of a typical year. It is also known that the cost of breeding a newborn sheep is a normal random variable with mean 300 TL and standard deviation 35 TL, a one-year-old sheep is a normal random variable with mean 210 TL and standard deviation 30 TL, and a two-year-old sheep is a normal random variable with mean 240 TL and standard deviation 25 TL. a) Construct the Markov chain that is suitable to express the above-mentioned process b) Is the Markov chain you constructed in part (a) absorbing? Explain in detail. c) What is the expected breeding cost for this farm in a typical year? (Assume that the annual breeding cost is determined based on the number of sheep on hand at the beginning of that year.)

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0 No sheep 1 One sheep 2 Two sheep 3 Three sheep 4 Four sheep 5 Five sheep 6 Six sheep 7 Seven sheep 8 Eight sheep 9 Nine sheep 10 Ten sheep 11 Eleven sheep 12 Twelve sheep 13 Thirteen sheep 14 Fourte... View the full answer