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A finite-state Markov model is fitted to the mobile propagation channel by the use of contingency tables. Narrow-band Rayleigh and Ricean fading are considered in detail, but the techniques extend to other types of fading. Several criteria may indicate that a first-order finite-state Markov model sufficiently characterizes the channel behavior. The parameters of the model are obtained both from theoretical analysis and simulation. Functional dependence between the transition probabilities and the steady-state probabilities is found in the slow fading case.