Flow, process and networks
Transition-probability matrix
Lists probabilities of moving from each current state to each next state.
- Table
- Transition
- Relationship
What it answers
How likely is each next state from the current state?
- Shape
- State-by-state probability grid
- What it shows
- Persistence and switching probability.
Example
The question
How likely is a customer to move from one status to another next month?
Monthly chance of moving between customer statuses
Illustrative data. It belongs to no company.
When to use it
Use it when
Discrete-state transition models.
Avoid it when
Undefined time steps or mixing counts with probabilities.
How to read it
Choose a current-state row and read probabilities across it.
Note
Rows normally sum to one under a row-stochastic convention.
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
- Aggregate transition counts and normalise each source-state row to one, unless a different stochastic convention is explicitly chosen.
- Units
- Conditional probabilities per time step. Each source-state row sums 1 under a row-stochastic convention.
Worked example
FromA: stayA0.8, moveB0.2. The row sums 1, so a case in A has 20% probability of B next step under the model.
| FromState | ToState | Probability |
|---|---|---|
| A | A | 0.8 |
| A | B | 0.2 |
| B | A | 0.3 |
| B | B | 0.7 |
