Using Markov Chains to Model Mortgage Defaults in R

The goal of this post is to blend the material I've been learning in my night class with my day-job and R.If we have some object that switches between states over time according to fixed probabilities, we can model the long-term behavior of this object using Markov chains*.A good example is a mortgage. At any … Continue reading Using Markov Chains to Model Mortgage Defaults in R

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