Consider an MA(2) model: STEPS -Write the equation of the M(2) model -Determine the model based on the delay operator. - Find the expected value of the model - Find the variance of the model. - Find the covariances associated with 1,2, and s steps. - Find the associated correlation indices of 1,2, and s steps. - Assume that information is available up to time $h$ and the function that contains the accumulated information f(h, h-1,……), determine the forecasts and the error associated with 1,2, and s steps.

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