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A question on ARMA, AR, PAC. see below for details please (a) Describe the three steps that Box and Jenkins suggested should be involved in

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A question on ARMA, AR, PAC. see below for details please

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(a) Describe the three steps that Box and Jenkins suggested should be involved in constructing an ARMA model for a time series y, . (5 marks) (b) Table 1 reports the sample autocorrelation (AC) and partial autocorrelation (PAC) functions obtained from a time series y, with sample size T=200.Table 1 Lags AC PAC 1 0.83 0.83 2 0.71 0.16 3 0.60 -0.09 4 0.45 0.05 5 0.44 0.04 6 0.35 -0.05 7 0.29 0.01 8 0.20 0.10 9 0.11 -0.03 10 0.01 -0.01 Can you identify the most appropriate time series process for this data? Justify your answer and provide a graphic representation of the AC and PAC functions including the 95% significance bounds

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