Question: Please explain the process and the steps as my answer keeps coming out wrong. ThefollowingappearstobeanARMA(2,2); however, showthatitisactuallyparameter redundant andisreallyanARMA(1,1): X t =1 . 25 X
Please explain the process and the steps as my answer keeps coming out wrong. ThefollowingappearstobeanARMA(2,2); however, showthatitisactuallyparameter redundant andisreallyanARMA(1,1):
Xt=1.25Xt1(3/8)Xt2+et0.5et1(3/16)et2.
Hint:move all X-terms to the left, write each side with backshift operators,andfactor.
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