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
What is Cost unit While the cost centres assists in ascertaining costs by location, person, equipment, operation or process, cost unit is a unit of product, service or a combin

I want some to solve my process costing problem solved

Disadvantages of ratio analysis 1) False results: ratios are based upon the financial statement. In case financial ratio is incorrect or the data upon which ratios are based

Explain the Shut down cost A cost which will be still be required to be incurred even though a plant is closed or shut down for a temporary period. Ffor example the cost of

DOMINANCE Dominance strategy is useful for reducing the size of the payoff table. Rules of Dominance: 1) If all the elements in a column are greater than or equal to the

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

Project C would involve a current outlay of $50,000 on equipment and $15,000 on working capital. The investment in working capital would be increased to $21,000 at the end of the f

Explain the Organization and Control System of a Car Company? A car company along with its three product lines. Line A is planned at the luxury segment, Line B at the upscale s

Transportation Problem-Solution Solution of the Transportation Problem: The fundamental steps of the transportation method are: Step 1:       Determine a preliminary b

Kent Company had 800 units of product in its assembly department's work in process inventory at the starting of the period. During the period 3,000 additional units of product were