Question: Consider the process {Xt} satisfying the recursion Xt = 0.5Xt1 + 0.5Xt2 + t,where {t} is a sequence of independent random variables with mean zero

Consider the process {Xt} satisfying the recursion Xt = 0.5Xt1 + 0.5Xt2 + t,where {t} is a sequence of independent random variables with mean zero and unit variance. Show that {Xt} is an ARIMA(p,d,q) process, by checking that ^d(Xt) is a covariance stationary and invertible ARMA processes, for some d = 0, 1, 2, . . . . Specify p, d and q.(Please show the complete calculation steps)

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