Markov analysis, Managerial Accounting

Markov Analysis

It is a way of analyzing the current movement of some system in an effort to predict the future movement of the same system.

There are two elements that must be determined in the process of constructing a Markov model in the system. These elements are the possible states of the system and the probabilities of moving between states (also called transition probabilities). A system state is a status of the system at a particular point in time, such as whether or not a machine is operating, whether an account is paid or not paid etc.

Transition probabilities:

Represent the probability of the system moving from one state to another during a particular period. We can organize the transition probabilities in the form of a table or matrix.

Posted Date: 12/8/2012 4:23:40 AM | Location : United States







Related Discussions:- Markov analysis, Assignment Help, Ask Question on Markov analysis, Get Answer, Expert's Help, Markov analysis Discussions

Write discussion on Markov analysis
Your posts are moderated
Related Questions
Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r

Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l

When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock mar

How much was Topaz’s operating income (income before taxes) last year?

Standard costing system However, it has been argued that traditional variance analysis is unhelpful and potentially misleading in the modern organization, and can make managers

Please help me with these problems Merry -Go -Around (MGR) a clothing retailer located primarily in shopping malls, was founded in 1968. By the early 1990s, the company had gon

The Nature of Accounting Accounting is process of recording, analyzing, summarizing, and interpreting financial (money-related) activities to allow individuals as well as org

Simple Queues A simple queue has the following characteristics; 1) There is a simple service channel 2) There are ‘discrete’ customers e.g. customers in a bank, or aircra

I need help making sure I did my accounting assignment correctly

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d