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There are three categories of income tax filers in the United States: those who never evade taxes, those who sometimes do it, and those who
There are three categories of income tax filers in the United States: those who never evade taxes, those who sometimes do it, and those who always do it. An examination of audited tax returns from one year to the next shows that of those who did not evade taxes last year, 95% continue in the same category this year, 4% move to the "sometimes" category, and the remainder move to the "always" category. For those who sometimes evade taxes, 6% move to "never", 90% stay the same, and 4% move to "always." As for the "always" evaders, the respective percentages are 0%, 10% and 90%. (i) Express the problem as a Markov chain. (2mark) (ii) In the long run, what would be the percentages of "never," "sometimes," and "always," tax categories (8ma
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