Reconsider Prob 29 2 2 Suppose now that whether or not the
Reconsider Prob. 29.2-2. Suppose now that whether or not the stock goes up tomorrow depends upon whether it increased today, yesterday, and the day before yesterday. Can this problem be formulated as a Markov chain? If so, what are the possible states? Explain why these states give the process the Markovian property whereas the states in Prob. 29.2-2 do not.
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