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TIME SERIES IIIQuestion 1 (a) Let Xt be a zero-mean,

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Question TIME SERIES IIIQuestion 1 (a) Let Xt be a zero-mean, unit-variance stationary process with autocorrelation ρk(rho) . Suppose that μt is a non-constant function an that σt(standard deviation) is a positive-valued non-constant function. The observed series is formed as Yt = μt σt Xt. (i) Find the mean and covariance function for the Yt process (ii) Is the process Yt stationary? ATTACHMENT PREVIEW Download attachment Screenshot (2763).png (b) Consider the model Yt = 5 et – 0.7et-1 0.5et-2, where et * * IID N(0, J. ). (i) Find the autocovariance function for the Y process. (ii) Using b(i) or otherwise, determine $1, and $22- (c) Suppose that {Y} is generated according to Y = e cet- ce-2 ce-3 … ceo fort

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