1.The table shows earnings per share of a corporation over a period of 30 years. Year Year Earnings 50.2 Earnings 45.4 1 16 2 33.9 17 35.6 3 20.6 18 30.1 4 25.4 19 25.5 5 32.9 20 22.4 31.3 21 12.3 7 18.8 22 20.9 8 14.5 23 42.8 17.5 24 86.3 10 23.6 25 73.6 11 20.6 26 47.7 12 21.6 27 56.6 13 27.6 28 53.1 14 36.5 29 48.9 15 49.3 30 41.2 LAssume that we have a AR(2) model as follows: Yt = 2.3yt-1 – 1.2yt-2 Is this model stationary or not?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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1.The table shows earnings per share of a corporation over a period of 30 years.
Year
Earnings
50.2
Year
Earnings
1
16
45.4
33.9
17
35.6
3
20.6
18
30.1
4
25.4
19
25.5
5
32.9
20
22.4
31.3
21
12.3
7
18.8
22
20.9
8
14.5
23
42.8
9.
17.5
24
86.3
10
23.6
25
73.6
11
0.6
26
47.7
12
21.6
27
56.6
13
27.6
28
53.1
14
36.5
29
48.9
15
49.3
30
41.2
I.Assume that we have a AR(2) model as follows:
Yt = 2.3yt-1 – 1.2y;-2
Is this model stationary or not?
Transcribed Image Text:1.The table shows earnings per share of a corporation over a period of 30 years. Year Earnings 50.2 Year Earnings 1 16 45.4 33.9 17 35.6 3 20.6 18 30.1 4 25.4 19 25.5 5 32.9 20 22.4 31.3 21 12.3 7 18.8 22 20.9 8 14.5 23 42.8 9. 17.5 24 86.3 10 23.6 25 73.6 11 0.6 26 47.7 12 21.6 27 56.6 13 27.6 28 53.1 14 36.5 29 48.9 15 49.3 30 41.2 I.Assume that we have a AR(2) model as follows: Yt = 2.3yt-1 – 1.2y;-2 Is this model stationary or not?
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