1. ARMA-Eview Application

2. MA Process –Y[i,1]=1*u[i,1]+1.5*u[i-1,1]; –MA with order of 1 –The Graph of Autocorrelation function –When Acf will dampen?

3. MA Process

7. AR Process –AR with order of 2 –Y[i,1]=0.8*Y[i-1,1]+ 0.6*Y[i-2,1]+3*u[i,1] –The Graph of Autocorrelation function –Stationary or Non-stationary? –Acf will damp?

8. AR Process

11. –Y[i,1]=0.2*Y[i-1,1]+ 0.3*Y[i-2,1]+3*u[i,1] –Stationary or non-stationary? –Acf will decrease? –Autocorrelation versus partial autocorrelation

12. AR Process

13. ARMA Process –Y[i,1]=0.6*Y[i-1,1]+u[i,1]+0.4*u[i-1,1]+0.2*u[i- 2,1] –Acf will dampen?

14. ARMA Process

15. ARMA (1,2) –Y[i,1]=0.6*Y[i-1,1]+u[i,1]+0.4*u[i-1,1]+0.2*u[i- 2,1] –How to estimate?

16. ARMA Process