The model y_t = e_t + ₁e_{t -} ₁ + ₂e_{t -} ₂ , t = 1, 2, ….. , where e_t is an i.i.d. sequence with zero mean and variance ²e represents a(n):

Name: The model y t = e t + 1 e t - 1 + 2 e t - 2 , t = 1, 2, ….. , where e t is an i.i.d. sequence with zero mean and variance 2 e represents a(n):
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Quizplus · Accepted Answer

The model can be rewritten as y_t = (1-phi_1*B)(1-phi_2*B)e_t. This is a moving average process of order two, where phi_1 and phi_2 are the moving average coefficients.

The Model Yt = Et + 1et - 1

The Model Y_t = E_t + ₁e_{t -} ₁