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