A telecom company models customer accounts using a Markov transition matrix. The states are: "Active" (Transient), "Suspended" (Transient), "Closed" (Absorbing), and "Sent to Collections" (Absorbing).
To predict how many currently "Suspended" accounts will eventually end up "Sent to Collections", the analyst calculates the Fundamental Matrix F = (I-B)^(-1) . What must they multiply F by to get the final absorption probabilities?

Question

A telecom company models customer accounts using a Markov transition matrix. The states are: "Active" (Transient), "Suspended" (Transient), "Closed" (Absorbing), and "Sent to Collections" (Absorbing).
To predict how many currently "Suspended" accounts will eventually end up "Sent to Collections", the analyst calculates the Fundamental Matrix  F = (I-B)^(-1) . What must they multiply  F  by to get the final absorption probabilities?

Answer

Matrix  B  (the matrix containing probabilities of transitioning among transient states)

Answer

Matrix  I  (the identity matrix for the absorbing states)

Answer

Matrix  P  (the original full transition matrix)

Answer

Matrix  A  (the matrix containing probabilities of transitioning from transient to absorbing states).

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A telecom company models customer accounts using a Markov transition matrix. The...

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