Construct a model of population flows between cities suburbs
Solution
Probability of moving from city to city = 0.96
Probability of moving from city to suburb = 0.03
Probability of moving from city to nonmetro = 0.01
Probability of moving from suburb to city = 0.01
Probability of moving from suburb to nonmetro = 0.98
Probability of moving from suburb to city = 0.01
Probability of moving from nonmetro to city = 0.015
Probability of moving from nonmetro to suburban = 0.005
Probability of moving from nonmetro to nonmetro = 0.98
Population of city =80
Population of suburban =175
Population of nonmetro = 52
For 2016
Population of city =0.96*80+0.01*175+0.015*52 = 79.33
Population of suburban =0.03*80+0.96*175+0.01*52 = 174.16
Population of nonmetro = 0.015*80+0.005*175+0.98*52 = 53.51
For 2017
Population of city =0.96*79.33+0.01*174.16+0.015*53.51 = 78.70105
Population of suburban =0.03*79.33+0.96*174.16+0.01*53.51 = 173.3243
Population of nonmetro = 0.015*79.33+0.005*174.16+0.98*53.51= 54.9747
For 2018
Population of city =0.96*78.70+0.01*17.3243+0.015*54.9747 = 78.11087
Population of suburban =0.03*78.70+0.96*173.3243+0.01*54.9747 = 172.4937
Population of nonmetro = 0.015*78.70+0.005*173.3243+0.98*54.9747= 56.39546
2) Person of city to nonmetro can move in 3 ways in 2015 to 2017
a) City (2015 ) - City(2016)- Nonmetro(2017)
b) City (2015 ) - Nonmetro(2016)- Nonmetro(2017)
c) City (2015 ) - subUrban(2016)- Nonmetro(2017)
Calcualting sum of all above probabiltiy = 0.96*0.01+0.01*0.98+0.03*0.01 = 0.0197
