If a Series, Y_t, Follows a Random Walk (With No

question 16

Multiple Choice

If a series, y_t, follows a random walk (with no drift) , what is the optimal 1-step ahead forecast for y?

• A) The current value of y.
• B) Zero.
• C) The historical unweighted average of y.
• D) An exponentially weighted average of previous values of y.

---

Definitions:

Allison CEC

Allison CEC likely refers to a controller or software used in Allison Transmission systems for commercial or heavy vehicles, designed to manage or enhance transmission functions.

Vehicle VIN

The Vehicle VIN, or Vehicle Identification Number, is a unique code used to identify individual motor vehicles, comprising a series of letters and numbers that encode specific data about the vehicle.

Part Numbers

Part numbers are unique identifiers assigned to each specific part in machinery or equipment for identification and ordering purposes.

Latching Solenoids

Electromagnetic devices that maintain their position (either open or closed) without continuous power supply.