steps

Steps:


1) First percentage change
2) Then for each series we find edges. Edges divide the function into equal intervals.
3) Then we find which edge the current value is in (for 3 edges 0 or 1 or 2) in g
for 5 state the edges are {min,−3σ/2,−σ/2,σ/2,3σ/2,max}
4) Then we get the probablity p. For each, we get the probablity of getting the next value same or different as current value. This is the transition matrix.
5) Then we count frequency f
6) Using edges g and frequency f, we calculate lambda. Lambda is just reduction.
7) Lambda is used to get the output.


5) Frequency:
+1 is just the value shifted.
It seems comparing with next value.