Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with attached question: ( Markov jump process and Kolmogorov forward equation ) In a particular company, the salary scale has only two different

Please help with attached question:

image text in transcribed
( Markov jump process and Kolmogorov forward equation ) In a particular company, the salary scale has only two different levels. On average, an employee spends 2 years at level 1 before moving on to the higher level, or leaving the company. An employee at the maximum level spends an average of 5 years before leaving. Nobody is demoted, and promotion can occur at any time. Upon leaving level 1, the probability that an employee moves to level 2 is 50%. (a) Explain how you could model this as a Markov jump process, commenting on any assumptions that you make. Draw the state diagram of the Markov process. (b) From the average waiting time, find the diagonal element of the intensity matrix, and the transition probability matrix of the jump Markov process. Hints: Use the fact that = = Pry- (c) Show that the intensity matrix of the Markov jump process is given by -0.50 0.25 0.25 Q = -0.20 0.20 0 0 (d) Use the Kolmogorov's forward equation to show that the probability of moving from level 1 to level 2 in f periods of time is given by Piz(1) = (e-021 - -0.51 )

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Discrete Structures, Logic, And Computability

Authors: James L Hein

3rd Edition

1449615279, 9781449615277

More Books

Students also viewed these Mathematics questions

Question

1. Critically discuss treatment approaches for violent offenders.

Answered: 1 week ago