Question

Assume that a man’s profession can be classified as professional (P), skilled labourer(S), or unskilled labourer (U). Assume that, of the sons of professional men, 80 percent will be professional, 10 percent will be skilled labourers, and 10 percent will be unskilled labourers. In the case of sons of skilled labourers, 60 percent will be skilled labourers, 20 percent will be professional, and 20 percent will be unskilled. Finally, in the case of unskilled labourers, 50 percent of the sons will be unskilled labourers, 25 percent will be professional and 25 percent will be skilled labour.

(i) Draw a state transition diagram to represent the above information.

(ii) Set up the matrix of transition probabilities.

Answer 1