Consider the time series model y t = XXXXXXXXXX7y t-l + ε t a. Is this a stationary time series process? b. What is the mean of the time series? c. If the current observation is y 100 = 750, would you...

Consider the time series model

y_t

= 200 + 0.7y_t-l
+
ε

_t

a. Is this a stationary time series process?

b. What is the mean of the time series?

c. If the current observation is y₁₀₀
= 750, would you expect the next observation to be above or below the mean?