Prediction Using Markov Model and Hidden Markov Model for the States of Banknotes

Abstract

This study aims to solve the problem of identifying the values of banknotes, and whether if they are fake or not. This problem considered one of the topics that many researchers are interested in the field of detecting banknotes values and determining whether they are fake. For this reason, Markov models were applied to identify the probabilities of banknotes values and if they are fake or not fake. In addition, the hidden Markov model was used to identify the probabilities of banknotes states when they were deposited a limited number of times. Important numerical results were obtained in applying the Markov model and the hidden Markov model where it can be implemented them on various other applications to be used in prediction. This study discovered the probabilities of banknote values and whether they are fake or not when depositing using the Markov models. In addition, the probabilities of tracing the trajectories of banknote states on deposit were obtained by hidden Markov model. Researchers can apply this study to other data sets to predict the future data.