Parameter estimation of a continuous-time Markov chain observed through a discrete-time memoryless channel is studied. An expectation-maximization (EM) algorithm for maximum likelihood estimation of the parameter of this hidden Markov process is developed and applied to a simple example of modeling ion-channel currents in living cell membranes. The approach follows that of Asmussen, Nerman and Olsson, and Ryd
William J. J. Roberts, Yariv Ephraim