Random Shock
The unexplained component of an equation that models a time series (e forecast errors).
More generally, when the rate is at a low level (close to zero), the standard deviation also becomes close to zero, which dampens the effect of the random shock on the rate.
Moving Average Model A time series equation representing an observed value at time t as a linear combination of present and past random shocks et (forecast errors). A moving-average process of order Q, MA(q), may be written: ...
 See also: Interest, Futures, Options, Order, Share
  
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