Question: Consider the AR(1) model, T; = 5 0.55x-1+Et Assume o? = 1.2 (a) Is this process stationary? Why or why not? [2 points] (b)

Consider the AR(1) model, T; = 5 0.55x-1+Et Assume o? = 1.2

Consider the AR(1) model, T; = 5 0.55x-1+Et Assume o? = 1.2 (a) Is this process stationary? Why or why not? [2 points] (b) What is the mean of this process? [2 points] (c) What is the variance of this process? [2 points] (d) What is the covariance of this process? [2 points]

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