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.
Next Up
BREAKING DOWN '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.
RELATED TERMS

Random Variable
A variable whose value is unknown or a function that assigns ... 
Stochastic Volatility  SV
A statistical method in mathematical finance in which volatility ... 
Shadowing
The process of creating values for variables that don't rely ... 
Stochastic Modeling
A method of financial modeling in which one or more variables ... 
Autoregressive
A stochastic process used in statistical calculations in which ... 
Sensitivity Analysis
Sensitivity analysis is a technique used to determine how different ...
Related Articles

Investing
The Basics Of Business Forecasting
Discover the methods behind financial forecasts and the risks inherent when we seek to predict the future. 
Trading
Triple Screen Trading System  Part 5
Stochastics can be very effective as the second screen in this threepart system. Find out how to use this popular oscillator. 
Investing
Is Now the Right Time to Buy Russian Stocks?
Examine the state of the Russian equity market entering 2016 and learn why adding Russian stocks to your investment portfolio may be a good idea. 
Investing
Scenario Analysis Provides Glimpse Of Portfolio Potential
This statistical method estimates how far a stock might fall in a worstcase scenario. 
Investing
The Basics Of Business Forecasting
Whether business forecasts pertain to finances, growth, or raw materials, itâ€™s important to remember that a forecast is little more than an informed guess. 
Insights
Understanding Regression
Regression is a statistical analysis that attempts to predict the effect of one or more variables on another variable. 
Investing
Understanding Forecasting
Forecasting is the use of historical data to predict the future. 
Trading
Know the Forces At Play Behind the Buy/Sell Cycles
Weekly Stochastics uncovers patterns of buying and selling pressure that can be predicted and capitalized upon by observant investors and traders. 
Investing
What's a Sensitivity Analysis?
Sensitivity analysis is used in financial modeling to determine how one variable (the target variable) may be affected by changes in another variable (the input variable). 
Insights
3 Economic Challenges Russia Faces in 2016
Learn about the three largest challenges facing the Russian economy in 2016. How will low oil prices and high inflation impact the Russian economy?
RELATED FAQS

What variables are most important when making a prediction through sensitivity analysis?
Explore sensitivity analysis and how this method considers different variables to determine a course of action based on statistical ... Read Answer >> 
What is the difference between fast and slow stochastics in technical analysis?
The main difference between fast and slow stochastics is summed up in one word: sensitivity. The fast stochastic is more ... Read Answer >> 
What is the difference between Stochastic Oscillator & Stochastic Momentum Index?
Discover how the stochastic oscillator and the Stochastic Momentum Index differ and why the latter is considered a more refined ... Read Answer >> 
What are the differences between Relative Strength Index (RSI) & Stochastic Oscillator?
Learn about some of the main differences between the relative strength index and the stochastic oscillator, two wellknown ... Read Answer >> 
What is the difference between financial forecasting and financial modelling?
Understand the difference between financial forecasting and financial modeling, and learn why a company should conduct both ... Read Answer >> 
How is the ability to perform Activities of Daily Living (ADL) measured?
Find out how to apply sensitivity analysis to your investment decisions, why sensitivity analysis might be useful and what ... Read Answer >>