A Model for Analysis of Bond Valuation By Using Microsoft Excel plus VBA

Wednesday, April 4, 2018

A Model for Making Two Ways Stochastic Matrix


Making a two ways stochastic matrix can be very hard especially when you have many elements in matrix such as a matrix 5*5 or 6*6 and more. But, what is two ways stochastic matrix? A two ways stochastic matrix is when the sum of all elements on each column and row are equal to 1. What is the application of the two ways stochastic matrix? In the reference with article of “Does this conjecture lead us toward an absolute justice in the world?” posted on link: http://www.emfps.org/2018/02/a-model-to-produce-magic-matrix.html, by using a two ways stochastic matrix, we will be able to predict a subject by using the Markov process.

Suppose company X has a delivery system, if this company wants to use the Markov chain to forecast the probability of delivery on each station, it will have to investigate the statistics during the period of a specific time to obtain many probability numbers.

Assume, the company has 5 stations and according to its statistics, it has gotten 10 probabilities. There are two questions:

1. Can these 10 probabilities make a two ways stochastic matrix?
2. If the answer to question (1) is positive, what is two ways stochastic matrix?

Below model is able to answer above questions:




Let me explain you about the components of above model as follows:

1. On cells P3:Y3, we have inputs including 10 probability

2. On cells Q4:T4, there are the errors. The error on the sum of rows is error.H and the error on the sum of columns is error.V.

3. On cells Q6:U10, we have outputs which give us a two ways stochastic matrix.

You can see below captured movie as the example for this model:






All researchers and individual people, who are interested in having this model, don’t hesitate to send their request to below addresses:


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