a. Define a first-order autoregressive process in terms of the relationship between successive observations. b. What are

Question:

a. Define a first-order autoregressive process in terms of the relationship between successive observations.
b. What are the X and Y variables in the regression model to predict the next observation in a first-order autoregressive process?
c. Describe the forecasts of an autoregressive process in terms of the most recent data observation and the long-run mean value for the estimated model.