Figure 9.2 represents the disturbances generated by equation (9.10) from the shocks of figure 9.1 when ρ = .9. Figure 9.4 creates disturbances from the shocks of figure 9.1 using equation (9.10) with ρ = .6. Figure 9.5 creates disturbances from the shocks of figure 9.1 using equation (9.10) with ρ = .3.

How do figures 9.2, 9.4, and 9.5 compare? Explain how this comparison arises from the different values for ρ

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80,000 60,000 40,000- 20,000 0 -20,000- Disturbances -40,000- Figure 9.4 Serially correlated disturbances for -60,000 -80,000 200 400 600 800 1,000 the sample of Observations equation (9.9), p = .6