\documentclass{mwrep}
\usepackage{kbordermatrix}
\usepackage{amsmath}
\begin{document}
\begin{equation}
\bar{P}=
\kbordermatrix{ \mathrm{state} & 1 & 2 & 4 & 3 & 6 & 5 & 7 \\
1 & 0.3 & 0.1 & 0.6 & 0.0 & 0.0 & 0.0 & 0.0 \\
2 & 0.2 & 0.1 & 0.7 & 0.0 & 0.0 & 0.0 & 0.0 \\
4 & 0.3 & 0.4 & 0.3 & 0.0 & 0.0 & 0.0 & 0.0 \\
3 & 0.0 & 0.0 & 0.0 & 0.2 & 0.8 & 0.0 & 0.0 \\
6 & 0.0 & 0.0 & 0.0 & 0.3 & 0.7 & 0.0 & 0.0 \\
5 & 0.0 & 0.4 & 0.1 & 0.0 & 0.0 & 0.2 & 0.3 \\
7 & 0.0 & 0.0 & 0.1 & 0.0 & 0.3 & 0.1 & 0.5}
\end{equation}
\end{document}
This generates a nice matrix:
How can I add clips above column descriptions as shown in image below?