Question: a. Define a random walk in terms of the relationship between successive observations. b. Carefully distinguish a random noise process from a random walk. c.

a. Define a random walk in terms of the relationship between successive observations.
b. Carefully distinguish a random noise process from a random walk.
c. Comment on the following: If it’s a random walk, then special time-series methods aren’t needed to analyze it.
d. What is the effect of the drift term in a random walk?
e. Describe the forecasts for a random walk process.

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