Transition Matrix

A transition matrix is a mathematical tool that shows the probabilities of moving from one state or condition to another over time. Imagine it as a grid where each row represents your current state, and each column represents the possible next states. The numbers in the grid indicate the likelihood of transitioning between these states. It’s commonly used in areas like finance, weather forecasting, or any system that changes over time, helping to predict future conditions based on present positions. Essentially, it provides a structured way to understand and calculate how things are likely to evolve.