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A second‐order Markov process is proposed as a statistical model for gravity anomalies in a local region. The method is applied to the analysis of errors in an inertial navigation system caused by unknown gravity phenomena. Statistical models of vertical deflection obtained from the anomaly model by means of the Vening Meinesz equations yield predictions of rms position and velocity errors for the navigation system. Actual vertical deflection data are used as simulated inputs to a computer model of an inertial navigator; resulting system errors are compared with errors predicted by the proposed model. The results demonstrate the validity of the second‐order Markov model in analyzing errors in an inertial navigation system.

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