Background
LHMMs are sometimes useful in specific structures because they can facilitate learning and generalization. For example, even though a fully connected HMM could always be used if enough training data were available, it is often useful to constrain the model by not allowing arbitrary state transitions. In the same way it can be beneficial to embed the HMM in a layered structure which, theoretically, may not be able to solve any problems the basic HMM cannot, but can solve some problems more efficiently because less training data is needed.
Read more about this topic: Layered Hidden Markov Model
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