Consider the time series model y t =50+ 0.8 y t-l + ε 1 - 0.2 ε t -l 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 = 270,...

Consider the time series model

y_t

=50+ 0.8y_t-l

+
ε
₁
- 0.2ε<sub>t

-l</sub>

a. Is this a stationary time series process?

b. What is the mean of the time series?

c. If the current observation is y₁₀₀
= 270, would you expect the next observation to be above or below the mean?