Indicate whether each phrase is more descriptive of financial accounting or managerial accounting.

(a) May be subjective

Financial accounting

Managerial accounting

(b) Often used to obtain financing

Financial accounting

Managerial accounting

(c) Typically prepared quarterly or annually

Financial accounting

Managerial accounting

(d) May measure time or customer satisfaction

Financial accounting

Managerial accounting

(e) Future oriented

Financial accounting

Managerial accounting

(f) Has a greater emphasis on cost-benefit analysis

Financial accounting

Managerial accounting

(g) Keeps records of assets and liabilities

Financial accounting

Managerial accounting

(h) Highly aggregated statements

Financial accounting

Managerial accounting

(i) Must conform to external standards

Financial accounting

Managerial accounting

(j) Special-purpose reports

Financial accounting

Managerial accounting

(k) Decision-making tool

Financial accounting

Managerial accounting

(l) Income statement, balance sheet, and statement of cash flows

Financial accounting

Managerial accounting

4. Consider the Markov chain X" = {X,} with state space S = {0, 1, 2, ...} and transition probabilities 1 ifj=i-1 Puj = 10 otherwise , for i 2 1 and Poo = 0, Poj = for j > 1. (a) Is this Markov chain irreducible? Determine the period for every state. (b) Is the Markov chain recurrent or transient? Explain. (c) Is the Markov chain positive recurrent? If so, compute the sta- tionary probability distribution. (d) For each state i, what is the expected number of steps to return to state i if the Markov chain X starts at state i? 5. Consider a Markov chain X = {X} with state space S = {0, 1, 2, ...} and transition probability matrix 0 1 0 0 P 0 0 P = O p 0 q 0 0 . . . 0 0 P 0 4 0 Here p > 0, q > 0 and p+q =1. Determine when the chain is positive recurrent and compute its stationary distribution.Problem 7.4 (10 points) A Markov chain X0,X1, X2, . . . with state space S = {1, 2, 3, 4} has the following transition graph: (a) Provide the transitiOn matrix fer the Markov chain. (13) Determine all recurrent and all transient states. Let {Xiji=1 36 be the sequence of continuous IIDRV with EXi = 40, Var Xi = 144, i = 1, ..., 36 and A36 Eil Xi = 36 (a) By using the Markov's inequality estimate P( A36