An equation for the random walk model is given by the equation: , where is the change in the time series from time t to time t - 1, is a constant, and is a random variable (noise) with mean 0 and some standard deviation .

Question

An equation for the random walk model is given by the equation:  , where  is the change in the time series from time t to time t - 1,  is a constant, and  is a random variable (noise) with mean 0 and some standard deviation  .

Quizplus · Accepted Answer

This is the general equation for a random walk model, where the change in the time series is equal to a constant plus a random variable (noise) with mean 0 and some standard deviation.

An Equation for the Random Walk Model Is Given by the Equation