Question

In: Advanced Math

Suppose that in any given period an unemployed person will find a job with probability .6...

  1. Suppose that in any given period an unemployed person will find a job with probability .6 and will therefore remain unemployed with a probability of .4. Additionally, persons who find themselves employed in any given period may lose their job with a probability of .3 and will have a .7 probability of remaining employed.

    1. Set up the Markov transition matrix for this problem

    2. There are 1000 people in the economy. At period 0, half of the

      population is unemployed, what will be the number of unemployed

      people after 1 period?

    3. What will be the number of unemployed people after 4 period?

    4. What is the steady-state level of unemployment?

Solutions

Expert Solution

Colby Messinger answered 1 year ago
Next > < Previous

Related Solutions

Suppose that unemployed workers find jobs at the rate of 15% per period and the job...
Suppose that unemployed workers find jobs at the rate of 15% per period and the job separation rate for employed workers is 5% per period. Assume the size of the labor force is fi xed at 1000. At period t=0, number of unemployed U0 = 200 and employed E0 = 800. Calculate the following (Round up to ONE decimal place if needed. Enter only numbers) (a) What is the unemployment rate at t=1 in percentage? (b) What is the natural...
Suppose that unemployed workers find jobs at the rate of 15% per period and the job...
Suppose that unemployed workers find jobs at the rate of 15% per period and the job separation rate for employed workers is 5% per period. Assume the size of the labor force is fi xed at 1000. At period t=0, number of unemployed U0 = 200 and employed E0 = 800. Calculate the following (Round up to ONE decimal place if needed. Enter only numbers) (a) What is the unemployment rate at t=1 in percentage? (b) What is the natural...
Question 6 Every month 27% of the unemployed find a job and 3% of the employed...
Question 6 Every month 27% of the unemployed find a job and 3% of the employed are seperated from their jobs. If the current unemployment rate is 10%, do you expect the unemployment rate to a. decrease b. stay the same c. cannot be determined d. increase Question 7 When the real wage is above the level that equates labor supply to labor demand, then the quantity of labor supplied a. depends on the nominal wage b. is smaller than...
Probability: Given that there were 500 individuals studied: Find the probability that: p(S/V) person was sick,...
Probability: Given that there were 500 individuals studied: Find the probability that: p(S/V) person was sick, given that the person was vacationing. working vactioning sick 170 85 healthy 80 165 0.27 0.34 0.55 0.92
Suppose that the probability that a certain machine will breakdown on any given day is 0.04,...
Suppose that the probability that a certain machine will breakdown on any given day is 0.04, and let X denote the number of breakdowns that occur over the course of a year. (Assume it is not a leap year) A. What is the expected number of breakdowns? B. What is the variance? C. What is the probability that the machine will have between 10 to 15 breakdowns a year? D. Suppose a visiting technician wants to report on the effectiveness...
Suppose a single fair die is rolled. Find the probability that it is a 2, given...
Suppose a single fair die is rolled. Find the probability that it is a 2, given that it is an odd number. The probability is
Suppose that the probability of Kim successfully bowling a strike is 35% on any given game....
Suppose that the probability of Kim successfully bowling a strike is 35% on any given game. In a sample of 5 games, what is the probability that Kim bowls: (a) exactly 1 strike? (b) at least 1 strike? (c) at most 3 strikes?
An airline sells 140 tickets for a flight. Suppose the probability that any given ticket holder...
An airline sells 140 tickets for a flight. Suppose the probability that any given ticket holder actually shows up for the flight is 95%. Find the probability that a. No one shows up for the flight. b. Everyone shows up for the flight. c. Exactly 130 passengers show up. d. At most 130 passengers show up. e. At least 130 passengers show up. f. Less than 130 passengers show up. g. The number of passengers showing up is between 130...
If the probability is 0.70 that any one person interviewed at a shopping mall will be...
If the probability is 0.70 that any one person interviewed at a shopping mall will be against an increase in the sales tax to finance a new football stadium, (a) What is the probability that among four persons interviewed at the mall the first three will be against the increase in the sales tax, but the fourth will not be against it? (b) What is the probability that among four persons interviewed at the mall three will be against the...
Suppose we perform a binomial experiment 50 times where the probability of success on any given...
Suppose we perform a binomial experiment 50 times where the probability of success on any given trial is 0.20. Which of the following is correct? μ = 10 and σ = 3.16 μ = 8 and σ = 3.16 μ = 10 and σ = 2.83 μ = 8 and σ = 2.83 Suppose the average number of Funko Pops owned by a Statistics instructor is 7 with a standard deviation of 2.3 Pops. What would be the z-score of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT