Question: a) Use the random numbers and create a simple random walk process. Estimate the first 10 autocovariance and autocorrelation estimates, and produce a correlogram. Does

a) Use the random numbers and create a simple random walk process. Estimate the first 10 autocovariance and autocorrelation estimates, and produce a correlogram. Does the ACF die if you increase the lag.max to its maximum value? Describe your results.

b) Generate an MA series Xt = 0.6wt + 0.3wt-1 and n =10,30,100,10000. Produce correlogram and interpret.

c) Generate an MA series Xt = 0.2wt-1 + 0.5wt + 0.3wt+1 and n =10,30,100,10000. Produce correlogram and interpret.

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