A multivariate Markov chain model for categorical data sequences and its applications in demand predictions. (English) Zbl 1040.62108

Ching, Wai-Ki; Fung, Eric S.; Ng, Michael K.

IMA J. Manag. Math. 13, No. 3, 187-199 (2002).

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:

62P20	Applications of statistics to economics
91B42	Consumer behavior, demand theory
60J20	Applications of Markov chains and discrete-time Markov processes on general state spaces (social mobility, learning theory, industrial processes, etc.)

Keywords:

demand prediction