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A firm in Eski ehir has a large sheep farm in which domestic sheep are bred for their meat peltry. Each year, 3 5 %
A firm in Eskiehir has a large sheep farm in which domestic sheep are bred for their meat peltry. Each year, of the newborn sheep: of the oneyearold sheep and of the two yearold sheep are slaughtered. The firm s policy is to breed its own newborn sheep to med the market demand: that is the firm does not purchase oneyearold or twoyearold sheep. For this purpose, the supply chain department of the firm determined that to meet the steady demands of the market, newborn sheep must be added to the farm at the beginning of a typical year is also known that the cost of breeding a newborn sheep is a normal random variable with mean TL and standard deviation TL a one year old sheep s a normal random variable with mean TL and standard deviation TL and a twoyearold sheep is a normal random variable with mean TL and standard deviation TL
a Construct the Markov chain that is suitable to express the abovementioned 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 determined based on the number of sheep on hand at the beginning of that year.
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