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 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.

Probability Distribution
A statistical function that describes all the possible values ... 
Stochastic Modeling
A method of financial modeling in which one or more variables ... 
Scenario Analysis
The process of estimating the expected value of a portfolio after ... 
Monte Carlo Simulation
A problem solving technique used to approximate the probability ... 
Value At Risk  VaR
A statistical technique used to measure and quantify the level ... 
Altman ZScore
The output of a creditstrength test that gauges a publicly traded ...

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When is it better to use systematic over simple random sampling?
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How can I measure portfolio variance?
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Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Active Trading Fundamentals
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Forex Education
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Active Trading
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What to know about stationary and nonstationary processes before you try to model or forecast. 
Fundamental Analysis
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Economics
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The liquidity coverage ratio requires banks and other financial institutions to hold enough cash and liquid assets on hand to weather market stress. 
Fundamental Analysis
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Economics
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Fundamental Analysis
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Economics
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Many market observers lately have been making some pretty pessimistic evaluations of the U.S. economy, declaring that it’s stagnating and soft.