A Transition Matrix is a mathematical tool used to describe the probabilities of moving from one state to another in a system. It is commonly used in fields like Markov Chains, where the future state depends only on the current state, not on the sequence of events that preceded it. Each entry in the matrix represents the probability of transitioning from one state to another. In a transition matrix, rows typically represent the current state, while columns represent the next state. The sum of the probabilities in each row equals one, ensuring that all possible outcomes are accounted for. This structure helps in analyzing systems in various applications, including economics, biology, and computer science.