(a) Consider the ARMA(2,1) process {Xt}, 0.45 X 1–0.05.X, 2 + € – 0.2q-1 where

(M1.1 A) Consider the Berries on a Farm model, where the bushels of berries increase by 10% every month and 600 bushels are harvested every month. For this work we will use At =1. Here's the model: 1 B' = -В - 600 10 B(0) = Bo. If B_0=3000, what happens to this model as the months go by? If B_0=9000, what happens to the madel as the months go by? What is the best initial value, B_0 for this model, so that the farm stays stable.