Question: Consider the simple moving average model Xt = 0.04 + Wt 0.2Wt1, where Wt is a sequence of i.i.d. normal random variables with mean zero

Consider the simple moving average model Xt = 0.04 + Wt 0.2Wt1, where Wt is a sequence of i.i.d. normal random variables with mean zero and variance 3. What is the mean of Xt? What is the variance of Xt?

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