About the three types of employment in a small town, using the following data:
Assume that state 1 is Industry, that state 2 is Small Business, and that state 3 is Self-Employed.
p=
0.80 0.10 0.10
0.20 0.70 0.10
0.40 0.10 0.50
(1) If an individual is self-employed this year, what is her most likely employment status 2 years from now? (Give the number of the state rather than its description in words.) (If there is more than one such state, which is the first one.)
(2)If an individual would like to be self-employed 2 years from now, what current employment status would give here the greatest likelihood of achieving her goal? (Give the number of the state rather than its description in words.) (If there is more than one such state, which is the first one.)