Consider the relationship between i and i2. (a) Follow equation (9.20) and the equation that succeeds it

Consider the relationship between εi and εi−2.

(a) Follow equation (9.20) and the equation that succeeds it to demonstrate that

(b) Using equations (9.10) and (9.12), replace εi with a function of εi−2.

Demonstrate that

(c) Follow the development of equations (9.21) through (9.25) to demonstrate that

(d) Follow the derivation of equation (9.26) to demonstrate that CORR(ε ,ε ) ρ . i i− = 2 2

Transcribed Image Text:

COV(E,,2)= E(&,,-2)