Let us assume that wttnbspis a variance-one white noise
Let us assume that {Wt}t is a variance-one white noise, and let us consider the time series {Xt}t defined by:
Compute the mean and auto-covariance functions of the time series {Xt}t. Is it stationary? Say why.
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1 let w be a normal gaussian random variable with mean 0 and variance 1 compute the values of the moments2 let us now
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let us assume that wttnbspis a variance-one white noise and let us consider the time series xttnbspdefined bycompute
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How might these concerns affect your methodology, and how do you plan on approaching the topic more generally?
