3. Suppose Δ1t follows the AR (1) model ΔΥ-30 + λίΔΙǐ-it . Show that Yt follows AR(2) model Deriv...

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3. Suppose Δ1t follows the AR (1) model ΔΥ-30 + λίΔΙǐ-it . Show that Yt follows AR(2) model Derive the AR (2) coefficients fo

Answer 1

Answer #1

Solution Given that 3 Suppose Yt fellows the ARC1) modet page-00-0 show tha yt followS AR12) mode, Cop) yt 00 о.yt-1-0(2 y+-2

Answer 2

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