Question: Q4. Consider a time series {Y} with a deterministic linear trend, i.e. Y = ao + at+ t, Here {} is a zero-mean stationary process

Q4. Consider a time series {Y} with a

Q4. Consider a time series {Y} with a deterministic linear trend, i.e. Y = ao + at+ t, Here {} is a zero-mean stationary process with an autocovariance function 7x (h). Consider the difference operator such that Y = Y Yt-1. You will demonstrate in this exercise that it is possible to transform a non-stationary process into a stationary process. (a) Illustrate {Y} is non-stationary. (b) Demonstrate {W} is stationary, if W = \Y = Y Yt1

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