Question: Many cutting-edge estimation and forecasting techniques involve simulation.Moreover, simulation is often a good way to get a feel for a model and its behavior.White noise

Many cutting-edge estimation and forecasting techniques involve simulation.Moreover, simulation is often a good way to get a feel for a model and its behavior.White noise can be simulated on a computer by using random number generators, which are available in most statistics, econometrics, and forecasting packages Simulate a Gaussian white noise realization of length 200.Call the white noise t. a.(10 points) Submit a correlogram. (Don't forget what you have learned about making good charts.) b. (10 points) Briefly discuss what you learn from the correlogram. (Two or three sentences at most.) Form the following model yt = t 0.9* t-1 , t = 2, 3, ..., 200. c. (10 points) Submit a correlogram. (Don't forget what you have learned about making good charts.) d. (10 points) Briefly discuss what you learn from the correlogram. (Two or three sentences at most.) Let y0 = 1 and yt = t 0.9* yt-1 , t = 2, 3, ..., 200. e. (10 points) Submit a correlogram. (Don't forget what you have learned about making good charts.) f. (10 points) Briefly discuss what you learn from the correlogram. (Two or three sentences at most.)

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