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The KLM Christmas Tree Farm owns a plot of land with 5000 evergreen trees. Each

ID: 428894 • Letter: T

Question

The KLM Christmas Tree Farm owns a plot of land with 5000 evergreen trees. Each year KLM allows retailers of Christmas trees to select and cut trees for sale to individual customers. KLM protects small trees (usually less than 4 feet tall) so that they will be available for sale in future years. Currently 1500 trees are classified as protected trees, while the remaining 3500 are available for cutting. However, even though a tree is available for cutting in a given year, it may not be selected for cutting until future years.

While most trees not cut in a given year live until the next year, some diseased trees are lost every year.

In viewing the KLM Christmas tree operation as a Markov process with yearly periods, we define the following four states:

State 1             Cut and sold

State 2             Lost to disease

State 3             Too small for cutting

State 4             Available for cutting but not cut and sold

The following transition matrix is appropriate:

State 1

State 2

State 3

State 4

P =

1.0

0.0

0.0

0.0

0.0

1.0

0.0

0.0

0.1

0.2

0.5

0.2

0.4

0.1

0.0

0.5

A) how many of the trees that are available for cutting but not cut and sold will eventually be lost to disease?

State 1

State 2

State 3

State 4

P =

1.0

0.0

0.0

0.0

0.0

1.0

0.0

0.0

0.1

0.2

0.5

0.2

0.4

0.1

0.0

0.5

Explanation / Answer

Let x1=no of trees cut and sold

x2=no of trees lost to disease

x3=too small for cutting=1500

x4=no of trees available for cutting but not cut and sold

initial system state S1={x1,x2,1500,x4}

given transition matrix

{1,0,0,0 }

{0,1,0,0 }

{0.1,0.2.0.5,0.2}

{0.4,0.1,0,0.5}

after solving using excel solver

x1=10498

x2=14497

x3=1500(already given)

x4=5498

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