Compute Var(ys) for the following model, where e; ~ wn(0, 0.01), i.e., awhite noise process with mean zero and variance 0.01.4 = 1+0.5y-1 + et, yo = 1.Please give the exact answer.

From the given information, yt=1+0.5yt-1+εt, y0=1 If t=1, yt=1+0.5yt-1+εty1=1+0.5y0+ε1…

Answered: Compute Var(y3) for the following…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter1: Functions

Section1.2: The Least Square Line

Problem 5E

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Compute Var(y3) for the following model, where ɛ ~ wn(0, 0.01), i.e., a white noise process with mean zero and variance 0.01. Yt = 1+0.5y-1 + €t, yo = 1. Please give the exact answer.