Using R studio:

1. Fit an ARMA(1,1) with an ar=0.9 and ma=-0.4, sample size should be 200. Plot the simulated series.

2. What do the acf and pacf plots suggest? Are they supporting the argument that this series come from the ARMA process?

3. Go to Fred Database and download the unemployment rate monthly series(period 1960 until the latest possible). Please check the video on how to upload data in R. Then, try to find the right ARIMA model that helps explain the dynamics of the unemployment rate in the USA. Please comment on the results.