Question: Let's create a walk by rolling a six-sided die. Define a random walk asHn=i=1nYi whereYi={-3,i={1}-2,i={2}-1,i={3}1,i={4}2,i={5}3,i={6}For n=2, find its variance, first order variation, and second order
Let's create a walk by rolling a six-sided die. Define a random walk asHn=i=1nYi whereYi={-3,i={1}-2,i={2}-1,i={3}1,i={4}2,i={5}3,i={6}For n=2, find its variance, first order variation, and second order variation, assuming that its a fairdie.
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