Generating a Transition probability matrix

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John
John 2011-8-17
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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