Consider the following MA (2) process yt = 0.7 2t1 + 1.35 t2 + t t

Consider the following MA (2) process
yt = 0.7 – 2εt–1 + 1.35 εt–2 + εt
εt is a white noise process, normally distributed with zero mean and unit variance.
a. Obtain the theoretical autocorrelation function up to lag 10.
b. Now, simulate the process for t = 1, 2, . . . ., 100 and compute the sample autocorrelation function up to lag 10. Comment and compare with your results in a.