Describe qualitative difference between the graphs


Draw graphs of AR(1) process y_k = 0.75y_k-1 + e_k for

a) y_0 = 1
b) y_0 = 10.

Assume that e_k is uniformly distributed on the interval [-0.5, 0.5].
Hint: use the function rand() (or similar) for uniform distribution on the interval [0, 1] available in modern languages (C/C++, Java) and computational software (Excel, Matlab, etc.) and subtract 0.5 from its values.

Describe qualitative difference between the graphs a) and b).

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Microeconomics: Describe qualitative difference between the graphs
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