Practical Machine Learning Cookbook

Markov chains - the car rental agency service

Suppose a car rental agency has three locations in Ottawa: A downtown location (labeled A), A East End location (labeled B), and a West End location (labeled C). The agency has a group of delivery drivers to serve all three locations. The agency's statistician has determined the following:

• Of the calls to the Downtown location, 30% are delivered in the Downtown area, 30% are delivered in the East end, and 40% are delivered in the West end
• Of the calls to the East end location, 40% are delivered in the downtown area, 40% are delivered in the East end, and 20% are delivered in the West end
• Of the calls to the West end location, 50% are delivered in the Downtown area, 30% are delivered in the East end, and ...