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The estimation and universal compression of discrete sources are considered, and a sequential algorithm for the universal coding of finite memory sources, attaining asymptotically minimum redundancy, is presented. The algorithm performs an online estimation of the source states and uses an arithmetic code.< <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. (1992) studied this question.
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