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3 Given a time series as: It = zyt-1 + et Assume : 1 et is Identically Independently distributed for all t 2 E( et

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3 Given a time series as: It = zyt-1 + et Assume : 1 et is Identically Independently distributed for all t 2 E( et ) = 0 for all t 3 Var(et ) = 60 for all t 4 yt and Etth are uncorrelated for all hol 5 It is Covariance Stationary Assume the current value of y is 8 Question: Calculate the expected value of y 3 years after Line. Calculate E(+ + 3/ Jt)

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