Suppose we have the linear process xt generated by xt = wt wt1, t = 0, 1, 2, . . ., where {wt }

Suppose we have the linear process xt generated by xt = wt − θwt−1, t = 0, 1, 2, . . ., where {wt } is independent and identically distributed with characteristic function φw(·), and θ is a fixed constant. [Replace “characteristic function" with

“moment generating function" if instructed to do so.]