Question: Write the mathematical formulation for the random walk with the drift model. What would be the expectation, computed in period t, of the time series
Write the mathematical formulation for the random walk with the drift model. What would be the expectation, computed in period t, of the time series y two periods from now (ie, in period t+2t)? What would be the error you made (ie what is the difference between yt+2 and its expectation)?
Step by Step Solution
3.35 Rating (170 Votes )
There are 3 Steps involved in it
Mathematical Formulation of a random walk w... View full answer
Get step-by-step solutions from verified subject matter experts
