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Given the information listed in table 14.1, suppose that 1,000 individuals are in the poor health state in period t and PG is 0.45, PP
Given the information listed in table 14.1, suppose that 1,000 individuals are in the poor health state in period t and PG is 0.45, PP is 0.40, and PD is 0.15 without the drug. With the drug, the probabilities are 0.65, 0.30, and 0.05, respectively. Compute the number of persons in each health state over three years if people do not take the drug. Similarly, compute the number of persons in each health state over three years if people take the drug.
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