 this method in the algorithm below.</p>
</div>
<div id="general-algorithm" class="section level1">
<h1>General Algorithm</h1>
<p>Here we present a general algorithm for simulating a discrete Markov chain assuming we have <span class="math inline">\(S\)</span> possible states.</p>
<ol style="list-style-type: decimal">
<li>Obtain the <span class="math inline">\(S\times S\)</span> probability transition matrix <span class="math inline">\(P\)</span></li>
<li>Set <span class="math inline">\(t = 0\)</span></li>
