Question: 2. (5 pts.) Consider the AR(1) model Yt = 5 - 0.35Yt-1 + Et , &, ~ iid N(0,1.2) (mean is 0 and o =1.2).

2. (5 pts.) Consider the AR(1) model Yt = 5 - 0.35Yt-1 + Et , &, ~ iid N(0,1.2) (mean is 0 and o =1.2). (a) Is this process stationary? Why or why not? (b) What is the mean of this process? (c) What is the variance of this process? (d) What is the covariance function of this process? (e) What is the autocorrelation function of this process

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