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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