A multivariate Markov chain model for categorical data sequences and its applications in demand predictions
W.-K. Ching · IMA Journal of Management Mathematics · 2002
Markov models are commonly used in modelling many practical systems such as telecommunication systems, manufacturing systems and inventory systems. In this paper 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.