Suppose we have a simple Autoregressive Model, or AR(1) model: Yt = 0.5 +0.2yt-1 + Et In the above, Et is considered white noise, i.e., normally-distributed with mean = 0 and variance = 1. Find the mean of yt.

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Suppose we have a simple Autoregressive Model, or AR(1) model:
Yt = 0.5 +0.2yt-1 + Et
In the above, Et is considered white noise, i.e., normally-distributed with mean = 0 and
variance = 1. Find the mean of yt.
Transcribed Image Text:Suppose we have a simple Autoregressive Model, or AR(1) model: Yt = 0.5 +0.2yt-1 + Et In the above, Et is considered white noise, i.e., normally-distributed with mean = 0 and variance = 1. Find the mean of yt.
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