Question

5 pts] Rewrite the following time series model using the backshift operator B terms of the series ye a) ANSWER:

Answer 1

$BX_{t}=X_{t-1}$ is the backshift operator. So, applying backshift operator on this series, means, the following:

$BX_{t}=0.2\times BX_{t-1} +0.3\timesBX_{t-2}+0.37\times BX_{t-5} +Be_{t}$

$BX_{t}=0.2X_{t-2}+0.3X_{t-3}+0.37X_{t-6}+e_{t-1}$

Now, you have to replace $X_{t}$ by $Y_{t}-Y_{t-4}$ and similarly for t-1,t-2,... Other t.

Hope you have a understood.