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
Bulk Agency Factoring : In this category factoring is essentially used as a method of financing book debts. In this sort of factoring the client continues to administer credit a

Applications of Markov Chains They are a particular class of probabilistic models and their applications include analysis of: Inventory systems Replacement and mainten

So as to makes sure that the receivables are collected in occupied and on due date by the customers, prior information of their credit worthiness must be obtainable. This informati

Non-Zero Sum Games Within very vast situations of possible non-zero games, varying degrees of co-operation exist between the participants. Games theory has been sufficiently de

Cost Analysis purposes For purposes of cost analysis, the desegregation of the generic value chain into individual value activities should reflect three principles that are not

How much was Topaz’s operating income (income before taxes) last year?

taking the role of a consultant, discuss the factors you would consider in selecting a suitable accounting system solutio for a small to medium enterprise. i has to be 1200 q\work

Debtors turnover ratio( or receivables turnover ratio) Meaning: this ratio establishes a relation ship between net credit sales and averages trade debtors.   Objective

Budgets An essential planning component is budgeting. Budgets sketch the financial plans for an organization. There are number of budget types. Operating Budgets -- A plan

Explain the practical application of differential costing with examples