(1) If volume is high this week, then next week it will be high with a probability of 0.9 and low with a probability of 0.1. (ii) If volume is low this week then it will be high next week with a probability of 0.5. Assume that state 1 is high volume and that state 2 is low volume. (Note: Express your answers as decimal fractions rounded to 4 decimal places (if they have more than 4 decimal places).) (1) Find the transition matrix for this Markov process. P = (2) Find the four-step transition matrix P(4): P(4) = (3) If the volume is high this week, what is the probability that it will be high 4 weeks from now (use P(4))? (4) If the volume is high this week, what is the probability that it will be low 4 weeks from now (use your answer to the preceding question to derive the answer to this question if you can)?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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