Consider the following time series sample of size \(T=10\) on a random variable \(y_{t}\) whose sample mean is \(\bar{y}=0\).

a. Use a hand calculator or spreadsheet to compute the sample autocorrelations

b. Using a \(5 \%\) significance level, separately test whether \(r_{1}, r_{2}\) and \(r_{3}\) are significantly different from zero. Sketch the first three bars of the correlogram. Include the significance bounds.

Transcribed Image Text:

t 1 2 3 4 5 6 7 8 9 Y 1 4 8 5 4 -3 0 -5 -9 15 10 -5