The transition matrix of a Markov chain is: [ .96 .04 ] [ .27 .73 ] If it starts in state 2, what is the probability that it will be in state 2 after 2 transitions? Solution The transition matrix is [P=([.96,.04],[.27,.73])] and we are asked to find the probability that if we are in state 2 we are again in state 2 after 2 transitions. The entries [p_(i,j)] are the probabilities of going from state i to state j. To find the probabilities after m transitions we look at [P^m] . [P^2=([.9324,.0676],[.4563,.5437])] . The probability of starting in state 2 and ending in state 2 after 2 transitions is the entry [p_(2,2)] in [P^2] which is .5437 ----------------------------------------------------------------- The probability is approximately .5437 ---------------------------------------------------------------.