00:01
In this problem, we are told that x sub n is the state of an area, whether it's forested or non -forested.
00:13
And that is n years after the year 2000.
00:23
So we have a state space that is either forested or non -forested.
00:35
For part a, we are asked to construct the one -step transition matrix for this chain by denoting state f as 1 and state nf as 2.
00:49
In the question, we are told that probability of going from a forested state to a forested state in the next step is equal to 90%.
01:03
0 .90.
01:07
And we can also denote this small p sub 1 -1, which is the single -step transition probability for going from state 1 to state 1.
01:22
Based on that, we can also say that the transition probability from state one to state two is 0 .1, because there is only two possibilities.
01:32
You're either going to a forested state or you are going to a non -forested state.
01:37
We are also told that if it is forested this year, the probability of it being non -if it is not forested this year, the probability of it being forested the next year is 11 % or 0 %.
01:52
0 .11, which means that if it is not forced it this year, the probability of it being not forsted in the next year is equal to 0 .89, which is the complement of 11%.
02:11
Now the transition matrix, the one -step transition matrix, is simply these entries.
02:27
So if we substitute in the actual values for these probabilities, we get following.
02:33
For part b, we're asked if the area was forested in the year 2000, what is the probability that it was forested in 2002 and in 2013? so if the starting point is 2000, the year 2002 implies n is equal to 2, which means that there would be two transitions from the year 2000 until the year 2002.
03:17
So what we're looking for is the two -step probability from forested to forested.
03:42
Now to find the two -step transition probabilities, we can multiply the one -step transition probabilities matrix by itself using matrix multiplication.
03:56
You can do this by hand for small matrices like this one, or you can use software, but it comes out to these entries.
04:04
0 .821, 0 .179, 0 .1969, and 0 .8031.
04:31
And so now the two -step probability of transitioning from forested to forested is found by looking at entry 1 -1 in the matrix, which is this entry here...