Question: Consider the following ARMA(1, 1) process: yt = 1 + 0.8yt-1 + et - 0.5et-1 where et ~ WIV (0, 1). We observed that y

Consider the following ARMA(1, 1) process: yt = 1 + 0.8yt-1

Consider the following ARMA(1, 1) process: yt = 1 + 0.8yt-1 + et - 0.5et-1 where et ~ WIV (0, 1). We observed that y = 4.2, er =-0.7. What is the lower bound on the 95% confidence interval of the optimal forecast of y for period T+1? Type your

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