A major traffic problem in the Greater Cincinnati area involves traffic attempting to cross the Ohio River from Cincinnati to Kentucky using Interstate 75. Let us assume that the probability of no traffic delay in one period, given no traffic delay in the preceding period, is 0.85 and that the probability of finding a traffic delay in one period, given a delay in the preceding period, is 0.65. Traffic is classified as having either a delay or a no-delay state, and the period considered is 30 minutes.
a)0.75^ 2 = (3/4)^2 = 9/16 is the probability for delays in the next two periods; 0.5625
If the probability of not being in a deay state is p in two consecutive periods then we have
p = 0.85p +(1-0.75)(1-p) = 0.85p + 0.25 - 0.25p
p = 0.60p + 0.25
0.40p = 0.25
p = 0.25/0.40 = 5/8 = 0.625
b) Check the probability of no delay in the next period is 0.625(0.85) + 0.375(0.25)
which is 0.625 as the probability of no delay.
c) There is no way traffic conditions figure to be the same in the middle of the night as they are at rush hour. So no,the assumption of constant transition probabilitities would not be the same at all times.
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