Question: 9 . 1 8 Consider the model Y t = 0 + 1 t + x t , where x t = x t -

9.18 Consider the model Yt=0+1t+xt, where xt=xt-1+et.We assume
that 0,1, and are known. Show that the minimum mean square error forecast l
steps ahead can be written as hat(Y)t(l)=0+1(t+l)+l(Yt-0-1t).
9 . 1 8 Consider the model Y t = 0 + 1 t + x t ,

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