Markov Chains - Collection Strategy

Table of Contents Introduction Mathematical Model Solution Introduction Language used: R (Markov Chains package) Task to solve: Analyze the Bad Payers situation. Transitional matrix with this components: Group A (good payers) 30% will stay in this category 30% will become a bad payer (Group B) The rest will pay all overdue Group B (bad payers) 10% goes to the default stage 20% pays the overdue 40% will stay in Group B 30% will go to Group A D (default): Default...