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I am confused by this equation as I rarely use math in my job but need this for a program that I am working on. What exactly does the full expression mean? Note that $m^*_i{_j}$ refers to a matrix whose values have already been obtained.

Define the transition matrix $M = ${$m_i{_j}$} as follows: for $i\not=j$ set $m_i{_j}$ to $m^*_i{_j}/|U|$ and let $m_i{_i} = 1-\Sigma_{j\not=i} m_i{_j}$

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    Yes, that is exactly what is usually meant by diagonal entry for a matrix.2012-07-11

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To obtain the transition matrix $M$ from the matrix $M^*=(m^*_{ij})$, the rule gives us two steps. First, for all off-diagonal terms $m^*_{ij}$ where $i\neq j$ we simply divide the existing entry by $\lvert U\rvert$ (in this case $\lvert U\rvert =24$), and we temporarily replace the diagonal entries $m^*_{ii}$ by $0.$ Second, to get the $i^{\rm th}$ diagonal entry $m_{ii}$ of $M$ we sum up all entries in the $i^{\rm th}$ row of this intermediate matrix and subtract the resulting sum from $1,$ giving $1-\sum_{j\neq i}m_{ij}.$