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.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!