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An irreducible parameterization for a finite memory source is constructed in the form of a tree machine. A universal information source for the set of finite memory sources is constructed by a predictive modification of an earlier studied algorithm-Context. It is shown that this universal source incorporates any minimal data-generating tree machine in an asymptotically optimal manner in the following sense: the negative logarithm of the probability it assigns to any long typical sequence, generated by any tree machine, approaches that assigned by the tree machine at the best possible rate.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">></ETX>
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Weinberger et al. (1995) studied this question.
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