Purchase Solution

# Modelling employee salaries with a Markov analysis

Not what you're looking for?

A certain firm has noticed that employees' salaries from year to year can be modeled by Markov analysis. The matrix of transition probabilities follows.

(a) Set up the matrix of transition probabilities in the form:
I 0
A B
(b) Determine the fundamental matrix for this problem.
(c) What is the probability that an employee who has received a raise will eventually quit?
(d) What is the probability that an employee who has received a raise will eventually be fired?

##### Solution Summary

The modeling employees salaries with a Markov analysis is examined.

##### Solution Preview

A certain firm has noticed that employees' salaries from year to year can be modeled by Markov analysis. The matrix of transition probabilities follows.

(a) Set up the matrix of transition probabilities in the form:
I 0
A B
(b) Determine the fundamental matrix for this problem.
(c) What is the probability that an employee who has received a raise will eventually quit?
(d) What is the probability that an employee who has received a raise will eventually be fired?

Salary in Next Year
Salary in Current Year Remains Unchanged Receives Raise Quits Fired
Remains Unchanged 0.2 0.4 0.3 0.1
Receives Raise 0.5 0.3 0.0 0.2

a) New state definition required: s = (A, B)

new state of definition required: s = (A, B )

A - salary in ...

##### Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.

##### Exponential Expressions

In this quiz, you will have a chance to practice basic terminology of exponential expressions and how to evaluate them.

##### Probability Quiz

Some questions on probability