Problem 3 Assume that the stock of ABC Corp. either retains…

Problem 3 Assume that the stock of ABC Corp. either retains the value that it had at the close of the previous day, or gains a point, or loses a point (the respective states denoted as 0, +1,−1), independently according to the following transition probability matrix Let {Xn}n≥0 denote the corresponding Markov Chain.

Problem 5 A small computer store can only store up to 3 comp…

Problem 5 A small computer store can only store up to 3 computers. Customers arrive at a Poisson rate of 2 per week to buy a computer if available. When only 1 computer remains, the store orders 2 more, which takes exponentially distributed time with a mean of 1 week. Sales may reduce inventory to 0 during delivery.