This research models the dynamics of customer relationships using typical transaction data. Our proposed model permits not only capturing the dynamics of customer relationships, but also incorporating the effect of the sequence of customer-firm encounters on the dynamics of customer...

The detection of remote homologies is of major importance for molecular biology applications like drug discovery. The problem is still very challenging even for state-of-the-art probabilistic models of protein families, namely Profile HMMs. In order to improve remote homology detection we...

A Hidden Markov Chain (HMC) is applied to study the forward premium puzzle. The weekly quotient of the interest rate differential divided by the log exchange rate change is modeled as a Hidden Markov process. Compared with existing standard approaches, the Hidden Markov approach allows a...

A partially observed stochastic system is described by a discrete time pair of Markov processes. The observed state process has a transition probability that is controlled and depends on a hidden Markov process that also can be controlled. The hidden Markov process is completely observed in a...

A partially observed stochastic system is described by a discrete time pair of Markov processes. The observed state process has a transition probability that is controlled and depends on a hidden Markov process that also can be controlled. The hidden Markov process is completely observed in a...