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Let et = -1, 0, 1, ... be a sequence of independent, identically distributed random variables with mean 1 and variance 4. Define a stochastic process by xt = (1/2)et - (1/4)et-1, t = 1, 2, ...i. Find E(xt)ii. Find V(xt)iii. Find Corr(xt, xt 1)iv. Find Corr(xt, xt 2)v. Is the series xt weakly dependent? Explain.
Let et = -1, 0, 1, ... be a sequence of independent, identically distributed random variables with mean 1 and variance 4. Define a stochastic process by xt = (1/2)et - (1/4)et-1, t = 1, 2, ...i. Find E(xt)ii. Find V(xt)iii. Find Corr(xt, xt 1)iv. Find Corr(xt, xt 2)v. Is the series xt weakly dependent? Explain.
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Let et = -1, 0, 1, ... be a sequence of independent, identically distributed random variables with mean 1 and variance 4. Define a stochastic process by xt = (1/2)et - (1/4)et-1, t = 1, 2, ...i. Find E(xt)ii. Find V(xt)iii. Find Corr(xt, xt 1)iv. Find Corr(xt, xt 2)v. Is the series xt weakly dependent? Explain.
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