Definition
Sequence of stochastic events (based on probabilities instead of certainties) where the current state of a variable or system is independent of all past states, except the current (present) state. Movements of stock/share prices, and growth or decline in a firm's market share, are examples of Markov chains. Named after the inventor of Markov analysis, the Russian mathematician Andrei Andreevich Markov (1856-1922). Also called Markov model. See also Markov process.
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