Consider the following stochastic system. Let Xn be the price of a certain stock (rounded to the nearest cent) at the time that the stock market closes on the n-th day starting today.   Would it be appropriate to model this system as a Discrete-time Markov Chain?

Show full answers and steps to part d) and e) using Markov Chain Theory. Please explain how you get to the answers without using excel, R or stata

Find the steady state matrix X of the absorbing Markov chain with matrix of transition probabilities P. 0.4 0 0.3 1 0.6 0 0.1 X = P = 0.3 0.3 000

A bus containing 100 gamblers arrives in Las Vegas on a Monday morning. The gamblers play only poker or blackjack, and never change games during the day. The gamblers' daily choice of game can be modeled by a Markov chain: 95% of the gamblers playing poker today will play poker tomorrow, and 80% of the gamblers playing blackjack today will play blackjack tomorrow. (a) Write down the stochastic (Markov) matrix corresponding to this Markov chain. (b) If 60 gamblers play poker on Monday, how many gamblers play blackjack on Tuesday? (c) Find the unique steady-state vector for the Markov matrix in part (a).