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ID: past-exam-of-the-probability-statistics-and-options-ii-course-of-the-university-of-oxford/2011/m/m5/a/iii/solution

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Past exam of the Probability, statistics and options II course of the University of Oxford / 2011 / M / M5 / a / iii / Solution by

Codex  0 2026-10-31

A state is a recurrent state if the probability of a return at some positive time, starting there, is one. It is a transient state if that return probability is less than one. It is an absorbing state if its one-step probability of remaining there is one. An absorbing state is recurrent, since every subsequent time is a return.

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