Question: Suppose that ???????? = ???????? + ????????, where ???????? is a first-order autoregressive process (1 ????????)???????? = ???????? and ???????? is a white noise

Suppose that ???????? = ???????? + ????????, where ???????? is a first-order autoregressive process (1 −

????????)???????? = ???????? and ???????? is a white noise process with variance ????2

???? . What model does the process ???????? follow? State your assumptions.

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