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Use arima.sim and set.seed(358512)to generate n = 1,000 observations from ARMA(3, 2) f1 = 0.2, f2 = 0.3, f3 = 0.4, q1 = 0.5, q2
Use arima.sim and set.seed(358512)to generate n = 1,000 observations from ARMA(3, 2) f1 = 0.2, f2 = 0.3, f3 = 0.4, q1 = 0.5, q2 = 0.6, and ! " = 1. Make sure that 1st three observations are 1.6771783, 1.1920122, and 1.3329608. a) (5 points) Provide the estimated ACF and PACF plots using 'acf2', 'max.lag=20', and 'ylim=c(-1,1)'. b) (5 points) Examine the estimated ACF and PACF plots and describe what characteristics about each plot suggest an ARMA(3, 2) model would be appropriate. c) (5 points)
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