Question: 1. Suppose that a stochastic process {yt} is generated by Yt = z + et for t = -0,...,T where {et} is an i.i.d. sequence

1. Suppose that a stochastic process {yt} is generated by Yt

1. Suppose that a stochastic process {yt} is generated by Yt = z + et for t = -0,...,T where {et} is an i.i.d. sequence with mean zero and variance 02. The random variable z does not change over time; it has mean zero and variance o. Assume that each et is uncorrelated with z. (a) Find the mean and variance of yt. Find Cov(Yt, Yt+h) for any t and h. (b) Is {yt} weakly stationary? Why or why not? (c) Is {yt} weakly dependent? Why or why not

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