Question: Identify the following models as ARMA(p, q) models (watch out for parameter redundancy), and determine whether they are causal and/or invertible: (a) xt = .80xt1

Identify the following models as ARMA(p, q) models (watch out for parameter redundancy), and determine whether they are causal and/or invertible:

(a) xt = .80xt−1 − .15xt−2 + wt − .30wt−1.

(b) xt = xt−1 − .50xt−2 + wt − wt−1.

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