Question: Consider the following MA ( 3 ) process: y = u + 0 . 5 ut 1 + 0 . 5 ut 2 0 .

Consider the following MA(3) process:
y = u +0.5ut1+0.5ut20.5ut3,
where ut is a noise process with a mean of zero and a variance of \sigma .
(a) Calculate the mean and variance of yt .
(b) Compute the autocorrelation function (ACF) for the process {yt }.

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