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A multivariate Markov chain model for categorical data sequences and its applications in demand predictions. (English) Zbl 1040.62108
Summary: Markov models are commonly used in modelling many practical systems such as telecommunication systems, manufacturing systems, and inventory systems. We propose a multivariate Markov chain model for modelling multiple categorical data sequences. We develop efficient estimation methods for the model parameters. We then apply the model and method to demand predictions for a soft-drink company in Hong Kong.
MSC:
62P20Applications of statistics to economics
91B42Consumer behavior, demand theory
60J20Applications of Markov chains and discrete-time Markov processes on general state spaces