A "Random Walk" is a mathematical concept that describes a path consisting of a series of random steps. It is often used in various fields, including finance, physics, and ecology, to model unpredictable processes. In a simple example, imagine a person taking steps in random directions; over time, their position can be analyzed to understand patterns or behaviors.
This concept is foundational in probability theory and helps explain phenomena like stock market fluctuations. The idea is that while individual steps are random, the overall behavior can reveal trends and insights about the system being studied.