Hidden Markov Models, Markov Chains, Markov Switching, Markov Auto Regression, Maximum Likelihood.
specific regression coefficients β_cap_0_1 and β_cap_0_2, which in our sample data set would correspond to the two predicted unemployment rate levels, and, The constant variance σ². Estimation can be done using Maximum Likelihood which finds the values of P, β_cap_0_1, β_cap_0_2 (represented