Simulate a random walk with and without drift for a sample of 10,000 observations. Observe when each process reverts to or/and crosses its unconditional mean. If they do not cross their means, keep on increasing the sample size until you find a cross. How large is your sample? Compute their unconditional first and second moments and their autocorrelation functions. Comment on your results.
This question was answered on: Jul 11, 2017
Need a similar solution fast, written anew from scratch? Place your own custom order
We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.