.Suppose that Yt follows the stationary AR (1) model Yt=2.5+0.7Yt−1+ϵt, where ϵt is i.i.d. with E(

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.Suppose that Yt follows the stationary AR (1) model Yt=2.5+0.7Yt−1+ϵt, where ϵt is i.i.d. with E(

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.Suppose that Yt follows the stationary AR (1)
model Yt=2.5+0.7Yt−1+ϵt,
where ϵt is
i.i.d. with E(ϵt)=0 and Var(ϵt)=9.
a) Compute the mean and variance of Yt
b) Compute the first two autocovariances of Yt
c) Compute the first two autocorrelations of Yt
d) Suppose that YT=102.3.
Compute
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