Consider the time series modelyt 200 07yt-l e consider, Basic Statistics

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Consider the time series modelyt 200 07yt-l e consider

Consider the time series modelyt = 200 + 0.7yt-l + e
Consider the time series model
yt = 200 + 0.7yt-l + et
a. Is this a stationary time series process?
b. What is the mean of the time series?
c. If the current observation is y100 = 750, would you expect the next observation to be above or below the mean?

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Basic Statistics: Consider the time series modelyt 200 07yt-l e consider

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Basic Statistics: Consider the time series modelyt 200 07yt-l e consider

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