Differencing time series: Removing Stochastic Dependence Let Xị = 2X1-1 - Xị-2 + Wt where {W{} is a stationary time series with zero autocovariance function. Find the first difference series VX¢ in terms of (X±-1, Xt-2, Wt). (Note that this expression of the first difference is not unique and there are expressions that use further lags of the X and W series, e.g., terms X-3 and W-1.) (There is no answer box for this formula.) Is {VX;} a stationary time series? True False Find and enter the second difference series V² X; in terms of the noise Wt, Wt-1, W;_2. (There is no answer box for this formula.) Is {V² X¿} a stationary time series? True False

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