The Random Walk Model Is Written As $Y _ { t } = Y _ { t - 1 } + m + e _ { t }$

question 21

Multiple Choice

The random walk model is written as: $Y _ { t } = Y _ { t - 1 } + m + e _ { t }$
) In this model, $e _ { t }$
Represents the:

• A) average of the Y's
• B) average of the X's
• C) forecasted value
• D) random series with mean 0 and some constant standard deviation

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Definitions:

Equivalent

Something that is equal in value, amount, function, or meaning to something else.

Equivalent

Having the same value, function, or meaning.

December

The last month of the year according to the Gregorian calendar, coming in at number twelve.

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