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Linear AlgebraMediumMarkov Chains & Long-Run Behavior

Markov Chains & Long-Run Behavior · Medium problem

A two-year college programme is modelled as an absorbing Markov chain. Each year a first-year student advances to second year with probability 0.70.7, repeats first year with probability 0.10.1, and drops out with probability 0.20.2. A second-year student graduates with probability 0.80.8, repeats second year with probability 0.10.1, and drops out with probability 0.10.1. Graduating and dropping out are absorbing. What is the probability that an entering first-year student eventually graduates? Express your answer as a common fraction.