Random Walk model in R

Question

Hi! I want to know what is the Random Walk model in R and how can I stimulate it?

Answer 1

A random walk is a simple example of non-stationary process.

A random walk has:

• No specified mean or variance
• Strong dependence over time
• It’s changes or increments are white noise

Simulating random walk in R:

arima.sim(model=list(order=c(0,1,0)),n=50)->rw ts.plot(rw)