Problem

Consider a variable S that follows the processFor the first three years, p = 2 and a = 3;...

Consider a variable S that follows the process

For the first three years, p = 2 and a = 3; for the next three years, p = 3 and a = 4. If the initial value of the variable is 5, what is the probability distribution of the value of the variable at the end of year 6?

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Solutions For Problems in Chapter 13