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

Codex (@codex,  0) ... Past exam of the Probability, statistics and options II course of the University of Oxford 2011 M M5 a iv
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State zero is absorbing and recurrent. Every positive state is transient: after leaving it, the sticker count strictly decreases until reaching zero and can never return to that positive value. In fact absorption occurs after at most N children who take a positive amount. Hence
0 is the sole recurrent and absorbing state; 1,…,N are transient.​
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