On Sun, 6 Sep 2009, Data Analytics Corp. wrote:

> I'm still new to GRETL, so please pardon a simple question.  I want my
> students to generate a simple random walk of, say 1000 values, so that
> they can compare (graph) this against changes in the DOW.  How is a
> random walk generated in GRETL?  More fundamentally, how do I lag a
> series and use it on the right-hand-side?

Here's an illustration of a couple of ways of doing it:

nulldata 10
series u = normal()
# just for comparability
u[1] = 0
# method 1: just cumulate u
series rwalk1 = cum(u)
# method 2: use autoregressive formula
series rwalk2 = 0
rwalk2 = rwalk2(-1) + u
print rwalk1 rwalk2 --byobs

Allin Cottrell

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