In: Statistics and Probability
A research study in a big metropolitan area shows that 2% of individuals living within the city limits move to suburbs during one-year period while 1% of individuals living in the suburbs move to the city during a one-year period.
In a particular metropolitan area, 40% of the population lives in the suburbs. What population changes do your long run probabilities project for this metropolitan area?
A group of 100 individuals are now living in the city, how many of them will stay after 3 years.
ANSWER::
5.
From our calculations in part (4) we get,
Thus in long run probability,
Thus changes in long run probability are
6.
Initial population distribution is given by
After 3 years population distribution is given by
Hence, after 3 years 94 of those people will stay in the city.
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