Consider the following AR(2) process: y t = 1.5 y t -1 – 0.5 y t -2 + u t This is a a) Stationary…
Consider the following AR(2) process:
yt= 1.5yt-1– 0.5yt-2+ut
This is a
| a) | Stationary process | |
| b) | Unit root process | |
| c) | Explosive process | |
| d) | Stationary and unit root proces |
