How to interpret ARIMA(0,1,0)?

I ran the auto.arima()command in R on a set of data and it chose the appropriate model to be ARIMA(0,1,0).

I know ARIMA(0,0,0) is just white noise, but what does ARIMA(0,1,0) mean?

Answer

ARIMA(0,1,0) is random walk.

It is a cumulative sum of an i.i.d. process which itself is known as ARIMA(0,0,0).

Attribution
Source : Link , Question Author : EconJohn , Answer Author : Richard Hardy

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