Markov chain definition

Markov chain

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.

This content can be found on the following page:

http://www.businessdictionary.com/definition/Markov-chain.html