error initial state defaulting to 1

I have the following code, and when I run it I get:

 initial state 0.4         0.6 is out of range
 initial state defaulting to 1

What should I do? thanks

function [chain,state]=markov(T,n,s0,V);

%function [chain,state]=markov(T,n,s0,V);
%  chain generates a simulation from a Markov chain of dimensionthe size of T

   T = [ 0.85 0.15; 0.05 0.95 ];
   s0 = [0.4 0.6];
   n=100;

   [r c]=size(T);
  for k=1:r;
    if sum(T(k,:)) ~= 1;
     disp('error using markov function')
      disp(['row ',num2str(k),' does not sum to one']);
      disp(' it sums to :'); 
      disp([ sum(T(k,:)) ]); 
      disp(['normalizing row ',num2str(k),'']);
      T(k,:)=T(k,:)/sum(T(k,:));
    end;
  end;
  V=[1:r];
  [v1 v2]=size(V);
  if v1 ~= 1 |v2 ~=r
    disp('error using markov function');
    disp(['state value vector V must be 1 x ',num2str(r),''])
    if v2 == 1 &v2 == r;
      disp('transposing state valuation vector');
      V=V';
    else;
      return;
    end;  
  end
  if s0 < 1 |s0 > r;
    disp(['initial state ',num2str(s0),' is out of range']);
    disp(['initial state defaulting to 1']);
    s0=1;
  end;
  %
  %T
  %rand('uniform');
  X=rand(n-1,1);
  s=zeros(r,1);
  s(s0)=1;
  cum=T*triu(ones(size(T)));
  %
  for k=1:length(X);
    state(:,k)=s;
    ppi=[0 s'*cum];
    s=((X(k)<=ppi(2:r+1)).*(X(k)>ppi(1:r)))';
  end;
  chain=V*state;

Answer 1

[Daniel Shub]

There is something wrong with what you have. It makes no sense for you function to take T, S0 and n as inputs only to overwrite them.

The simple solution is to change

s0 = [0.4 0.6];

to

s0 = [1 0.6];

or

if s0 < 1 |s0 > r;

to

if s0 < 0.4 |s0 > r;

While that will get rid of the warning, it may not be correct.