Open AccessApplications of Markov Chain in Forecast
Author(s) -
Xia Yutong
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1848/1/012061
Subject(s) - markov chain , computer science , markov model , markov process , variable order markov model , continuous time markov chain , markov property , markov renewal process , additive markov chain , stochastic matrix , markov kernel , balance equation , econometrics , mathematics , machine learning , statistics
The article is going to introduce Markov chain and its application into business. Two main daily life examples are applied for the explanation of this theory. In the Markov process, the probability of one state only depends on the next previous state. A mathematical model of market forecast and weather forecast is able to build through constructing transition probability matrix, analysising and computing with Markov chain. According to the data and calculation verification, we can see Markov Chain is a scientific, effective and convenient method for prediction and can be used for solving daily issues.