Markov Analysis

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Dictionary Says

Definition of 'Markov Analysis'


A method used to forecast the value of a variable whose future value is independent of its past history. The technique is named after Russian mathematician Andrei Andreyevich Markov, who pioneered the study of stochastic processes, which are processes that involve the operation of chance. The Markov Analysis introduces a method for forecasting random variables.
Investopedia Says

Investopedia explains 'Markov Analysis'


Markov analysis has a number of applications in the business world. Two common applications are in estimating the proportion of a company's accounts receivables that will become bad debts and forecasting future brand loyalty of current customers.
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