08Oct 2024
Hidden Markov Model
HMM is an instance of the state space model in which the latent variable are discrete.What's this state space model? State-space models are models that use state variables to describe a system by a set of first-order difference equations.This is similar to the principles of Markov chains however in this case the latent states are assumed to be the dictator of the observed values.
08Oct 2024
Monte Carlo Simulation and Stock Prices Forecasting
Monte Carlo Simulation is a mathematical technique used in modeling the probability of different outcomes especially where there is uncertainty or randomness of variables. Monte Carlo simulation helps in providing an understanding of the impact of risk and uncertainty in prediction and forecasting models.