A Markov model can be represented as a finite state machine where transitions are probability driven (suppose I'm in a state 'a' and I can transition to state 'b' or 'c' where the probability of transitioning from 'a'->'b' is 30% and 'a'->'c' is 70%). The diagram on page 14 definitely looks like some sort of finite state machine but I don't know which classification it falls under. It doesn't switch states randomly so it's not a Markov chain.