Consider the time series process x, = at +bt+c+z,, where z, - WN (0,0) and a ,b.c are constants. (a) Calculate the E(x, ) and Var (x,). (b) Is the process.x, stationary? Justify your answer. (c) Calculate Vx,.

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QUESTION 2
Consider the time series process x, = at +bt +c+ z, , where z, ~ WN (0,0²) and a ,b,c
are constants.
(a) Calculate the E(x,) and Var(x,).
(b) Is the process.x, stationary? Justify your answer.
(c) Calculate V.x,.
(d) Is the process Vx, stationary? Justify your answer.
(e) Calculate Vx, .
(f) Is the process v²x, stationary? Justify your answer.
(g) Identify the model in part (e).
Transcribed Image Text:QUESTION 2 Consider the time series process x, = at +bt +c+ z, , where z, ~ WN (0,0²) and a ,b,c are constants. (a) Calculate the E(x,) and Var(x,). (b) Is the process.x, stationary? Justify your answer. (c) Calculate V.x,. (d) Is the process Vx, stationary? Justify your answer. (e) Calculate Vx, . (f) Is the process v²x, stationary? Justify your answer. (g) Identify the model in part (e).
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