Question: time series and risk models 3. Let X, te N be a sequence of independent, identically distributed random variables on a given probability space (12,F,P).

time series and risk models

3. Let X, te N be a sequence of independent, identically distributed random variables on a given probability space (12,F,P). Set Y := X1, Y := Xt-1 + X7, t > 2. Show that the time series process Y = {Y/(w)}tenweg is a purely indetermin- istic process. [20 Marks)

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