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A sequence of 0's and 1's is generated the following way: For the first sample, randomly select a 0 or 1 with probability 1/2 for

A sequence of 0's and 1's is generated the following way:

  1. For the first sample, randomly select a 0 or 1 with probability 1/2 for each.
  2. If the last sample was a 1, the next sample will be a 1 with probabilityp and a 0 with probability1p. If the last sample was a 0, the next sample will be a 1 with probability1pand a 0 with probabilityp

How can you estimatep using the number of times the following sequential pairs appear in the sequence: 00, 01, 10, 11.

For example in the sequence 00011010 you would make this table (p = 0.5):

00: 2

01: 2

11: 1

10: 2

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