So I feel that if the goal is to give a conceptual understanding, linear algebra is overkill. If the goal is to show how it's done in practice then this isn't terribly useful since it doesn't even show the tip of the iceberg!
I believe we know exactly what the matrix is, based on the hyperlink structure itself. It's updated and displayed on the vis here based on that, too.
btw, David Austin's article on PageRank is highly recommended : http://www.ams.org/samplings/feature-column/fcarc-pagerank
[1] http://www.aclweb.org/anthology/E/E09/E09-1005.pdf It's interesting research, but it unfortunately turns out that even the best results in word sense disambiguation aren't good enough for a lot of applications. I wish I had 2 years to do nothing but play around in this field.
How about an easy explanation, one that a middle- or high-schooler who just learned to solve 3-equations and 3-variables and has seen probability can understand?
Let's say you have three websites: Reddit, Yahoo, and Google. Let's say Reddit links to Yahoo and Google, and Yahoo links to Google, and Google links to Reddit.
If you start on a random page and click randomly, what happens? You'll land on Reddit with probability x, Yahoo with probability y, and Google with probability z. Notice that if you continue clicking randomly, x, y, and z will stop changing after a while.
Okay, now stop clicking. How likely are you to have landed on page Google? (i.e., What's z?)
- You're on Reddit with probability x, and 1/2 of the links there will take you to Google.
- You're on Yahoo with probability y, and 1/1 of the links there will take you to Google.
- You're on Google with probability z, and 0/1 of the links there will take you to Google.
Therefore, z = x(1/2) + y(1/1) + z(0/1)
Similarly, x = x(0/2) + y(0/1) + z (1/1)
Similarly, y = x(1/2) + y(0/1) + z (0/1)
Since x + y + z = 1, we get: x = 2/5, y = 1/5, z = 2/5
What does that mean? It means Reddit and Google are twice as "important" as Yahoo, since you're twice as likely to land on them.
There, we just learned how PageRank works with zero linear algebra business.