Transition probabilities, Managerial Accounting

Transition probabilities

These are the probabilities of moving from one state to another in the next time period. Usually they are written in the form of a probability matrix.

Example:

1448_1.jpg

Sum of probabilities in any row equals one    OR

1579_2.jpg

Sum of probabilities in any column equals one

 

Posted Date: 12/8/2012 4:40:34 AM | Location : United States







Related Discussions:- Transition probabilities, Assignment Help, Ask Question on Transition probabilities, Get Answer, Expert's Help, Transition probabilities Discussions

Write discussion on Transition probabilities
Your posts are moderated
Related Questions
Batch size of one Set up time is the amount of time needed to adjust tools and to retool for various product. Long set ups a change over time make the production of batches wit

Explain Functional classification a)  Liquidity ratio: these are the ratio which measures the short term solvency or financial position of a firm. These ratios are calculati

Assigning Costs and Assets After identifying its value chain, a firm must assign operating activity and assets to value activities. Operating costs must be assigned to the act

STANDARD COSTING AND BUDGETARY CONTROL In practice, the terms standard cost and budgeted cost might be used interchangeably. Whereas it is possible to have budgeting without s

Treasury management is explained as "the corporate handling of all financial matters, the production of external and internal funds for business, the management of cash flows and c

What are the Advantages of contributionmargin analysis the concept of contribution is variable aid to management in making managerial decisions . a few benefits resulting from

I WANT TO KNOW THE RULES FOR DOING LIFO AND FIFO

After going through this section, you must be capable to: Know the concept and characteristics of working capital; Identify with the difference among net working capital

Stellar Packaging Products and its primary customer, Estrella Coffee, are deciding on appropriate costing systems for their operations. Stellar Packaging Products’ manufacturing is

Budget Preparation The organization's budget is ready following the acceptance and sanction of the decision packages. Once the budget of organization has been accepted manager