Markov chains and queueing theory together provide a robust framework for analysing systems that evolve randomly over time. Markov chains describe stochastic processes where the future state ...

Markov chains provide a fundamental framework for modelling stochastic processes, where the next state depends solely on the current state. Hidden Markov models (HMMs) extend this framework by ...

Bayesian statistics have made great strides in recent years, developing a class of methods for estimation and inference via stochastic simulation known as Markov Chain Monte Carlo (MCMC) methods. MCMC ...

What Is Markov Chain Monte Carlo? Markov Chain Monte Carlo (MCMC) is a powerful technique used in statistics and various scientific fields to sample from complex probability distributions. It is ...

I've heard of Markov Chains, but I didn't understand them until I visited this site that explains them with simple interactive animations. Look at the illustration above. The gray circle can move ...

While the use of Markov chains — a statistical framework to decipher the probability of one event transitioning to another — in finance is not a novel concept, it’s not deployed effectively. In my ...