In: Statistics and Probability
Problem 16-15 (Algorithmic)
A large corporation collected data on the reasons both middle managers and senior managers leave the company. Some managers eventually retire, but others leave the company prior to retirement for personal reasons, including more attractive positions with other firms. Assume that the following matrix of one-year transition probabilities applies with the four states of the Markov process being retirement, leaves prior to retirement for personal reasons, stays as a middle manager, and stays as a senior manager.
Leaves- | Middle | Senior | ||
Retirement | Personal | Manager | Manager | |
Retirement | 1.00 | 0.00 | 0.00 | 0.00 |
Leaves-Personal | 0.00 | 1.00 | 0.00 | 0.00 |
Middle Manager | 0.02 | 0.07 | 0.79 | 0.12 |
Senior Manager | 0.08 | 0.01 | 0.04 | 0.87 |