Definition and Example of a Markov Transition Matrix

Financial Markov Process, Creative Commons Attribution-Share Alike 3.0 Unported license.

A Markov transition matrix is a square matrix describing the probabilities of moving from one state to another in a dynamic system. In each row are the probabilities of moving from the state represented by that row, to the other states. Thus the rows of a Markov transition matrix each add to one. Sometimes such a matrix is denoted something like Q(x' | x) which can be understood this way: that Q is a matrix, x is the existing state, x' is a possible future state, and for any x and x' in the model, the probability of going to x' given that the existing state is x, are in Q.

Terms Related to Markov Transition Matrix

  • Markov Process
  • Markov Strategy
  • Markov's Inequality

Resources on Markov Transition Matrix

Writing a Term Paper or High School / College Essay? Here are a few starting points for research on Markov Transition Matrix:

Journal Articles on Markov Transition Matrix

Format
mla apa chicago
Your Citation
Moffatt, Mike. "Definition and Example of a Markov Transition Matrix." ThoughtCo, Mar. 20, 2018, thoughtco.com/markov-transition-matrix-definition-1148029. Moffatt, Mike. (2018, March 20). Definition and Example of a Markov Transition Matrix. Retrieved from https://www.thoughtco.com/markov-transition-matrix-definition-1148029 Moffatt, Mike. "Definition and Example of a Markov Transition Matrix." ThoughtCo. https://www.thoughtco.com/markov-transition-matrix-definition-1148029 (accessed May 24, 2018).