Question: Need explanation on how to solve this thanks 1. Assuming a time-series yt follows the MA(2) model: yt = H+ 01Et-1 + 02et-2tet, E~i. i.

Need explanation on how to solve this thanks

1. Assuming a time-series yt follows the MA(2) model: yt = H+ 01Et-1 + 02et-2tet, E~i. i. d(0, 02). Now find yo and show p3 = 0. [hint: (a + b + c)2 = a2 + b2 + c2 + 2ab + 2ac + 2bc]

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