"Here's the idea. The idea is that our random walk model your value depended on every single shock. All the way through, in a finite memory random walk, your value only depends on the previous five shocks, the previous seven shocks. Let
"We can often think of. An outcome is being a sequence of random events. And if an outcome of sequence of random events, what we're gonna expect to see, is we're gonna expect to see an expect value of zero. But we're
"A Random Walk Down Wall Street, written by Burton Gordon Malkiel, a Princeton economist, is an influential book on the subject of stock markets which popularized the random walk hypothesis. Malkiel argues that asset prices typically exhibit signs of random walk and
"In some cases you can think of outcomes as being combinations of skill and luck, and you can determine how much skill and how much luck by looking at variations in outcomes. Is there a lot of flipping, or is there sort
"If I'm writing a model of people, I don't wanna say, I know what these people are gonna do. Instead, I might say, well, you know, they're probably gonna do this, but who knows. You know, they're people. They're crazy. They might
"A random walk is a mathematical object, known as a stochastic or random process, that describes a path that consists of a succession of random steps on some mathematical space such as the integers. An elementary example of a random walk is