Markov analysis

Markov analysis is a statistical analysis used to predict the future behavior of a variable where its behavior is not linked to its past history. In accounting, Markov analysis is used to predict the amount of bad debts that a business may experience from its accounts receivable. The marketing department can use it to predict the future brand loyalty of current customers. This method is named after the person who formulated it, Andrei Markov.

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Financial Analysis