Stochastic

# Markov chains in the long run what fraction of the

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Unformatted text preview: oducts? 1.28. A midwestern university has three types of health plans: a health maintenance organization (HM O), a preferred provider organization (P P O), and a traditional fee for service plan (F F S ). Experience dictates that people change plans according to the following transition matrix HMO PPO FFS HMO .85 .2 .1 PPO .1 .7 .3 FFS .05 .1 .6 67 1.12. EXERCISES In 2000, the percentages for the three plans were HM O:30%, P P O:25%, and F F S :45%. (a) What will be the percentages for the three plans in 2001? (b) What is the long run fraction choosing each of the three plans? 1.29. Bob eats lunch at the campus food court every week day. He either eats Chinese food, Quesadila, or Salad. His transition matrix is CQ C .15 .6 Q .4 .1 S .1 .3 S .25 .5 .6 He had Chinese food on Monday. (a) What are the probabilities for his three meal choices on Friday (four days later). (b) What are the long run frequencies for his three choices? 1.30. The liberal town of Ithaca has a “free bikes for the people program.” Yo...
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## This document was uploaded on 03/06/2014 for the course MATH 4740 at Cornell.

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