Application of GM(1,1) in the Prediction of Local Finance Based on the Data Processing and Markov Chain

摘要

This paper analyzes the general GM (1,1) prediction model and has established a new GM (1,1) model based on the data processing and Markov chain. I use this model to predict the local finance of Hangzhou and the result proves that the model based on the data processing not only gives a higher precision but also is more sensitive to the change of outer economic situation.