Begin with the AR(1) model as in equation (8.1). a. Take variances of each side of equation (8.1) to show that of (1 - 8;) = o-, where o? = Var y, and of = Var E,. b. Show that Cov(yy, y-1) = B102. c. Show that Cov(y, Vik) = Bro?. d. Use part (c) to establish equation (8.2). y's = Bo + Biyi-I + 8. 1 =2. . ...T. (8.1) Cov(7. VIA Cov(yr. VIA) Px = Com(yr. V) = (8.2) /Var( v) Var(V-*)