Walter is extremely agitated because he believes his neighbours are spying on him, spreading rumours about him, and following him wherever he goes. Using the DSM-IV-TR, Walter would have most likely received a diagnosis of

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Walter displays symptoms of paranoia, including believing he is being spied on, followed, and talked about by his neighbors. These symptoms are most consistent with a diagnosis of paranoid schizophrenia.

Walter Is Extremely Agitated Because He Believes His Neighbours Are