Question: Following with the same data as in Exercise 5, a. Compute the sample moments (mean) and y^0 (variance) of g2t. b. Compute the autocorrelation function

Following with the same data as in Exercise 5,
a. Compute the sample moments (mean) and y^0 (variance) of g2t.
b. Compute the autocorrelation function of g2t, that is, pk for k = 1, 2, 3, 4. Interpret the autocorrelations by plotting g2t against the lagged values of g2t. Give an economic interpretation.

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