Question
we have four time-series processes (1) yt = 1.2 + 0.5yt1 + t (2) yt = 0.8 + 0.4t1 + t (3) yt = 0.6
we have four time-series processes
(1) yt = 1.2 + 0.5yt1 + t (2) yt = 0.8 + 0.4t1 + t (3) yt = 0.6 1.2yt1 + t (4) yt = 1.3 + 0.9yt1 + 0.3yt2 + t]
How do you simulate 300 observations form the above MA(2) process in above four processes and discard the initial 100 observations in R studio.
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An Elementary Introduction To Mathematical Finance
Authors: Sheldon M Ross
3rd Edition
1139065106, 9781139065108
