Derive the autocorrelation coefficients and draw histograms
Derive the autocorrelation coefficients (k) for AR(2) (provide all details!) and draw histograms (up to k=10) for
a) a_1 = 0.8, a_2 = 0.1b) a_1 = 1.0, a_2 = -0.5
Describe qualitative difference between these two cases.
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Derive the autocorrelation coefficients (k) for AR(2) (provide all details!) and draw histograms (up to k=10) for. Describe qualitative difference between these two cases.
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If the process does not have unit root, modify a_2 so that it has unit root. Draw graphs of both processes with y_0 = 1 and e_k uniformly distributed on the interval [-0.5, 0.5].
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