Appendix 14.1: Markov Analysis with QM for Windows
Markov analysis can be used for a variety of practical problems, including determining market shares and equilibrium conditions and tracing patients through a medical system. The grocery store example is used to show how Markov analysis can be used to determine future market-share conditions. Programs 14.1A and 14.1B reveal how QM for Windows is used to compute market share and equilibrium conditions. Note that the initial conditions and the ending market shares (probabilities) are also displayed.
Absorbing state analysis is also discussed in this chapter using a bill-paying example. Programs 14.2A and 14.2B show how QM for Windows is used to compute the amount paid and the amount of bad debt using absorbing state analysis.