Intelligent Systems II · TEE · papers

Q1(d) Brand-switching Markov chain [5]

Final examination · 24 Nov 2025

Actual TEE paper · 100 marks · 3 hours · Q1 compulsory + any 4 of Q2–Q7 · every answer verified (key errors flagged)

Question. Users switch between Brand X and Brand Y each year: 25% of X users switch to Y and 75% stay; 40% of Y users switch to X and 60% stay. (a) Write the transition probability matrix. (b) Draw the state transition diagram. [5 marks]

Answer

Given

All transition values are given in the full question. State order: X, Y.

To find

The transition matrix and state diagram.

Formula and why it applies

Rows mean current state; columns mean next state. For each destination, multiply each origin amount by its transition probability, then add.

Solution

Step 1. Convert every origin row to probabilities
From / ToXY
X0.750.25
Y0.40.6

Each row sums to 1 because it lists all possible destinations for that origin. A percentage is divided by 100: 25%=.25.

Step 2. Interpret entries and draw the transitions

Diagonal entries are the fractions staying at their current state; off-diagonal entries are fractions moving to a different state. Each arrow uses its origin row and destination column. These fractions have different origin populations, so adding raw column probabilities does not give the number arriving.

Swipe across the diagram to read its labels ↔
Each arrow is labelled with the probability of that transition.
Diagram: Each arrow is labelled with the probability of that transition.. Labels: Brand switching each year | 0.25 | 0.4 | 0.75 | 0.6 | X | Y
Each arrow is labelled with the probability of that transition.
Final answer. The transition matrix and state diagram are given above.