Consider a random walk model with the following equation: 
, where 
is a normally distributed random series with mean of 0 and standard deviation of 12.
-(A) Use Excel to generate a time series of 25 values using this random walk model with a starting value of 200.
(B) Conduct a runs test on the series you generated for (A). Is it random? Explain.
(C) Conduct a runs test on the differences between successive values for the series you generated for (A). Is it random? Explain.
(D) Use the time series you constructed in (A) to forecast the next observation.
Definitions:
Violent Revenge
Acts of retaliation that involve physical force intended to hurt, damage, or kill someone as a response to a perceived wrong.
Groupthink
A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.
Asch Paradigm
A research methodology used to study conformity to group pressure by asking participants to match line lengths.
Conformity
The act of adjusting one's behaviors, attitudes, or beliefs to align with those of a group or social norm.
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