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Generating a Transition probability matrix

Asked by John on 17 Aug 2011

Hi there,

I'm trying to understand markov chains and transition probability matrices. I have a recording of time, velocity and acceleration data for a car in three columns. Could someone explain to me how you would generate a two dimensional transition probability matrix of velocity and acceleration. A description of how you would do it would be great.

Would I use this?

http://www.mathworks.com/help/toolbox/finance/transprob.html

Thank you for your help

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John

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