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Solve clearly Consider a 2-state Markov chain and a random variable yt = y'rt, where y = (2,5)'. Suppose it is known that E(yttilit) =

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Solve clearly

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Consider a 2-state Markov chain and a random variable yt = y'rt, where y = (2,5)'. Suppose it is known that E(yttilit) = (3,4). (a) Find a transition matrix consistent with the conditional expectations. (b) Find a stationary distribution for the Markov chain It

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