Quantitative Analysis for Management, 13/e

Appendix 14.2: Markov Analysis with Excel

Performing the Markov analysis matrix operations is very easy with Excel, although the input process is different from most Excel operations. The two Excel functions that are most helpful with matrices are MMULT for matrix multiplication and MINVERSE for finding the inverse of the matrix. However, special procedures are used when these are entered in the spreadsheet. ­Matrix addition and subtraction are also easy in Excel using special procedures.

Using Excel to Predict Future Market Shares

In using Markov analysis to predict future market shares or future states, matrices are multiplied. To multiply matrices in Excel, we use MMULT as follows:

1. Highlight all the cells that will contain the resulting ...