Flow, process and networks

Markov-state transition diagram

Shows states and conditional transition probabilities in a Markov model.

  • Diagram
  • Transition
  • Relationship

What it answers

How can a process move between states?

Shape
State nodes and probability-labelled arrows
What it shows
State persistence, cycles and absorbing states.

Example

The question

How do customers move between active, at risk and lost each month?

Monthly chance of moving between customer statuses (state diagram)

Monthly chance of moving between customer statuses (state diagram)Three states with arrows labelled by monthly chance. Active stays active 85%, moves to at risk 10%, lost 5%. At risk returns to active 30%, stays 40%, is lost 30%. Lost stays lost 98% and returns 2%.10%30%30%5%2%Active85%At risk40%Lost98%
Monthly chance of moving between customer statuses (state diagram)Three states with arrows labelled by monthly chance. Active stays active 85%, moves to at risk 10%, lost 5%. At risk returns to active 30%, stays 40%, is lost 30%. Lost stays lost 98% and returns 2%.10%30%30%5%2%Active85%At risk40%Lost98%
Three states with arrows labelled by monthly chance. Active stays active 85%, moves to at risk 10%, lost 5%. At risk returns to active 30%, stays 40%, is lost 30%. Lost stays lost 98% and returns 2%.

Illustrative data. It belongs to no company.

When to use it

Use it when

Communicating a small Markov model.

Avoid it when

Large state spaces or treating probabilities as guaranteed paths.

How to read it

Follow probability-labelled arrows from the current state.

Note

Define the time step and model assumptions.

The data you need

Layout
Transition edge list
Fields
FromState: text; ToState: text; Probability: number in [0,1]
One row is
One state-to-state transition probability. What is the grain?
Rules
For a row-stochastic model, sum probabilities to 1 for each FromState. Include absorbing-state self-transitions.
Optional
Alternative transition counts with a documented normalisation.
Preparation
Build valid state probabilities for a defined time step; check each outgoing-state total and absorbing self-loops.
Units
Arrows show probabilities conditional on the current state and defined next-step interval; outgoing probabilities sum 1.
Example of the input layout: Edge list plus optional node tableAn edge list: one row per link, from one node to another, often with a node table beside it.FromToValueABACBCCDABCD
An edge list: one row per link, from one node to another, often with a node table beside it.

Worked example

A->A0.8, A->B0.2. Draw a self-loop and outgoing arrow; probabilities from A total 1.

FromStateToStateProbability
AA0.8
AB0.2
BA0.3
BB0.7