QUESTION 1 [5,5] Write the general equation for an a) AR( 4) process b) MA(3) process
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The general equation for an AR(4) process can be written as: $$X_t = c + \phi_1 X_{t-1} + \phi_2 X_{t-2} + \phi_3 X_{t-3} + \phi_4 X_{t-4} + \epsilon_t$$ Show more…
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