TS Module 11: simulated and actual time series HW
(The attached PDF file has better formatting)
Homework assignment: Partial autocorrelations
[Partial autocorrelations are covered in Module 10, along with sample autocorrelations.]
A stationary ARMA process has ñ2 = 0.20.
ñ1 ranges from 0.2 to 0.7 in units of 0.1.
A. Graph the partial autocorrelation of lag 2 (ö22) as a function of ñ1.
B. Explain why the partial autocorrelation is positive for low ñ1 and negative for high ñ1.