Hi
Could someone please explain Q.3a (matrices module) from last years exam 2?
I've read the examiners report but still don't understand it!
I thought element 0.4 (row 2, column 3) in matrix T would have some role in the answer??
I'll try explain this as best as i can, in the first transition matrix, you see that 10% of B changes to C before C withdraws, That's clear right? You can see from the matrix.
Next, in the second matrix, which depicts what would happen after Mr Choi withdraws, 10% would split equally, 5% will go to A (10% to 15%) and 5% to B (80% to 85%), you can see how the 10% would split equally between A and B, right? since 5% of a total 10% goes to B, 5/10 * 100 = 50%