
Explanation:
The discrete-time mean-reverting process can be modeled as:
Where:
$50 - 30 = 20$)$0.4$)$30$)Plugging the given values into the equation:
$50 - 30 = 0.4 \times (b - 30)20` = 0.4 \times (b - 30)b - 30 = \frac{20}{0.4}b - 30 = 50b = 80$
The long-run mean value for the variable is 80.
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