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Argue that the glacial varves series, say xt , exhibits heteroscedasticity by computing the sample variance over the first half and the second half of
Argue that the glacial varves series, say xt , exhibits heteroscedasticity by computing
the sample variance over the first half and the second half of the data.
Argue that the transformation yt = log xt stabilizes the variance over the series.
Plot the histograms of xt and yt to see whether the approximation to normality is
improved by transforming the data.
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