Compute the default first kernel row.
[0.8*0.9+0.2*0.2,0.8*0.1+0.2*0.8]=[0.76,0.24].
Why can an independent-step model and a shared good-or-bad-condition model both have step marginals p?
They describe independent step failures and one shared good/bad condition, respectively.
Compute the transfer conditional product.
0.9*0.8*0.7=0.504.