Question: code class = asciimath > Consider the following time series: xt = 0 . 2 xt - 1 + 0 . 8 xt - 2

code class="asciimath">Consider the following time series: xt =0.2xt-1+0.8xt-2+wt -1.2wt-1+0.2wt-2, wt is a white noise process with variance \sigma 2.(a) Write down the reduced form of this model if it can be simplified. (5 pts)(b) Is this model invertible and stationary? (5 pts)(c) If invertible, transform this model into MA(\infty ) with the representation xt = wt +P\infty write the first four terms of \pi j and the recursive formula for general \pi j.(10 pts)

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