MATH 220 The Transition Matrix

MATH 220 The Transition Matrix2.1 Basic Principles. 2.1.1 The Transition Matrix. A stochastic process is a mathematical model of a situation in the real world that evolves in time in a probabilistic fashion, i.e. we don't seem to be able to completely predict the future. The situation in the real world is often called a system. For the time being we model the system in discrete time as opposed to continuous time. For example, this might be because we observe the system at discrete time inte...

MATH 220 The Transition Matrix MATH 220 The Transition Matrix 2 Markov Chains 2.1 Basic Principles. 2.1.1 The Transition Matrix. A stochastic process is a mathematical model of a situation in the real world that evolves in time in a probabilistic fashion, i.e. we don't seem to be able to completely predict the future. The situation in the real world is often called a system. For the time being we model the system in discrete time as opposed to continuous time. For example, this might b...