Probability question - expected number of students

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I'm trying to solve the following question:

In a course there are two groups - group $A$ and group $B$. Each week a student passes from group $A$ to group $B$ with probability $p$ and quit the course (i.e leaves group $B$) with probability $q$.

In the beginning there are $M$ students in each group. Length of course is $N$ weeks.

  1. What is the expected number of students in group $A$ at the end?
  2. What is the expected number of students in group $B$ at the end?
  3. What is the expected number of quitting students during the course?
  4. Let $p=q$. What are the result for the above questions?

My try:

  1. Let $A_i$ be the number of students in group $A$ at week $i$, then $A_{i+1}=(1-p)A_i$ and so $$A_N=(1-p)^N\cdot A_0=M(1-p)^N$$ and this is also the expected number at the end.
  2. Let $B_i$ be the number of students in group $B$ at week $i$, then \begin{align*}B_{i+1}&=pA_i+(1-q)B_i=pA_i+(1-q)\left[pA_{i-1}+(1-q)B_{i-1}\right] \\ &={\dots}=p\sum_{k=0}^{i}(1-q)^{i-k}A_k+(1-q)^{i+1}B_0\end{align*}So, $\displaystyle B_N=p\sum_{k=0}^{N-1}(1-q)^{N-(k+1)}A_k+(1-q)^{N}B_0$. Now, can I use linearity of expectation?
  3. Isn't it simply $2M-\mathbb{E}[A_N]-\mathbb{E}[B_N]$?
  4. It is simply plug $p=q$ and find results... I believe it shouldn't be so hard.

Am I on the right track?

And help will be appreciated. Thanks.

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You're definitely on the right track, but I'd be more careful distinguishing between the random variables and their expectations. For example, when you claim $A_{i+1} = (1-p)A_i$, that's not true: $A_{i+1}$ and $A_i$ are random variables, and they aren't necessarily related by the constant $1-p$ (e.g., there is positive probability that they will be equal because no one will switch). What is true is $\mathbb{E}[A_{i+1}] = (1-p)\mathbb{E}[A_i]$. This will make things a bit more tricky in part 2.

A slightly different tack that might be helpful (especially in part 2) is to write $$ B_i = \sum_{j=1}^M I_i^{(j)} + \sum_{j=1}^M J_i^{(j)}$$ Here $I_i^{(j)}$ is the indicator random variable for the event that student #$j$ of those who started in class $A$ is now in class $B$, and $J_i^{(j)}$ is the indicator random variable for the event that student #$j$ of those who started in class $B$ is now in class $B$. The advantage of this is that clearly all the $I_i^{(j)}$s are identically distributed, as are the $J_i^{(j)}$s, so linearity of expectation gives $$ \mathbb{E}[B_i] = M\mathbb{E}[I_i] + M\mathbb{E}[J_i]$$ $\mathbb{E}[I_i]$ is the probability that a student starting in class $A$ ends up in class $B$, and $\mathbb{E}[J_i]$ is the probability that a student starting in class $B$ ends up in class $B$. Since in each case you are dealing with only a single student, these probabilities might be slightly less tricky to compute.