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 true. The equation given is a standard equation for a random walk model, where the change in the time series from time t to t-1 is equal to a constant plus a random variable with mean 0 and some standard deviation.

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