Scribd
Upload
2 views2 pages

Module3 Module4 Solutions

The document covers key concepts related to Markov Chains, including definitions, properties, and examples of transition probabilities and stationary distributions. It also discusses Z-tests and t-tests, highlighting their assumptions, differences, and applications in statistical analysis. Additionally, it provides specific examples and calculations related to these topics.

Uploaded by

Uzair Khan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
2 views2 pages

Module3 Module4 Solutions

The document covers key concepts related to Markov Chains, including definitions, properties, and examples of transition probabilities and stationary distributions. It also discusses Z-tests and t-tests, highlighting their assumptions, differences, and applications in statistical analysis. Additionally, it provides specific examples and calculations related to these topics.

Uploaded by

Uzair Khan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Solutions - Module 3 & Module 4 Module 3 — Part A (First 10) 1.

Define a Markov Chain


A Markov chain is a stochastic process in which the probability of moving to the next state depends
only on the present state and not on previous states.

2. What is the Markov Property?


The future state depends only on the current state and is independent of past states.

3. Define State and State Space


State: Possible condition/position of the system.
State Space: Collection of all states.

4. What is Transition Probability?


Probability of moving from one state to another in one step.

5. Transition Probability Matrix (TPM)


A matrix containing all transition probabilities.
Properties:
1. Every element lies between 0 and 1.
2. Sum of each row is 1.

6. What is a Stochastic Matrix?


A square matrix whose entries are non-negative and each row sum is 1.

7. Define Steady-State Probability


A probability vector that remains unchanged after transition.

8. Unique Stationary Distribution


A stationary distribution that is only one for the Markov chain.

9. Define an Irreducible Markov Chain


A Markov chain in which every state can be reached from every other state.

10. Unique Fixed Probability Vector


For matrix [[3/4,1/4],[1/2,1/2]], the stationary vector is:
[2/3, 1/3]

Module 3 — Part B (First 10) 22. Long run probability of studying = 4/11

23. Long run probability of studying = 27/92

24. Stationary probability vector = [2/7, 2/7, 3/7]

25. Fixed probability vector = [3/8, 3/8, 3/16, 1/16]

26. P13(2)=3/8, P22(2)=0, P(2)=[7/16,1/8,7/16], P1(2)=7/16

27. P32(2)=3/8, P22(2)=1/4, P(2)=[25/72,7/24,13/36], P2(2)=7/24

28. Fixed probability vector = [1/7,4/7,2/7]


29. Fixed probability vector = [2/7,3/7,2/7]

30. Winning probability:


1) Second game = 0.45
2) Third game = 0.435
3) Long run probability = 3/7

31. Each person receives the ball equally often:


[1/4,1/4,1/4,1/4]

Module 4 — Part A (First 10) 1. What is Z-test?


A statistical test used when population standard deviation is known and sample size is large.

2. Assumptions of Z-test
1. Sample is random.
2. Population is normal.
3. Population SD is known.
4. Sample size is large.

3. Difference Between Z-test and t-test


Z-test: sigma known, large sample.
t-test: sigma unknown, small sample.

4. Hypotheses
H0: mu = mu0
H1: mu > mu0

5. Bulb Life Problem


Z = -2.4
Since |Z| > 1.96, reject H0. Difference is significant.

6. One-tailed Z-test
Used when testing only one direction.

7. Formula for Z-statistic


Z = (x■ - µ)/(σ/√n)

8. What is t-test?
Used when population SD is unknown and sample size is small.

9. Degrees of Freedom
df = n - 1

10. Paired t-test


Used when observations are related. Example: marks before and after coaching.

You might also like