Question: Suppose Yt = 3 +2t + Xt, where Xt = 0.5 Xt -1 + Zt and Z. ~ WN(0,o') . 1. Is {Y.} weakly stationary?

Suppose Yt = 3 +2t + Xt, where Xt = 0.5

Suppose Yt = 3 +2t + Xt, where Xt = 0.5 Xt -1 + Zt and Z. ~ WN(0,o') . 1. Is {Y.} weakly stationary? Explain your answer. 2. Let Me = Yt - Yt- 1. Show that M, is stationary and compute its mean and autocovariance function

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