In the town, the weather pattern has three categories each day: Windy, Rainy or Sunny. The...

In the town, the weather pattern has three categories each day: Windy, Rainy or Sunny. The weather pattern each day follows a Markov chain model. If it is windy on a day, the following day will be sunny for sure; if it is rainy, the following day will be rainy with probability 0.25 otherwise sunny; and if it is sunny, the following day will be windy with probability 0.25, Rainy with probability 0.25 and sunny otherwise. A worker is paid $175, $125 and $75 on days work depending on if it is Windy, Rainy or Sunny, respectively.

a. Write the transition matrix for this weather pattern
b. How much does the worker get paid on an average day?

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Expert Solution

Manojponduru answered 5 months ago

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