Question
(a) Plot and draw the time series for each stochastic equation below. (i) Y t = a t -0.5a t-1 (ii) Y t -
(a) Plot and draw the time series for each stochastic equation below.
(i) Yt = at -0.5at-1
(ii) Yt - 1.2 Yt-1 +0.2 Yt-2= at
(iii) Yt= 20-0.7t + at
(b) Explain the reasons to take the log differences rather than the differenced original series modelling the stochastic term in the series.
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Elementary Principles of Chemical Processes
Authors: Richard M. Felder, Ronald W. Rousseau, Lisa G. Bullard
4th edition
978-1118431221, 9781119192138, 1118431227, 1119192137, 978-1119498759
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