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): A)static model. B)moving average process of order one. C) moving average process of order two. D) autoregressive process of order two.

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The given model is a moving average process of order two, as it has two lagged terms of the error term, eS1U1B1tS1U1B0, and no lagged terms of the dependent variable, S1U1B0. The model y_t = e_t + 11eab06d_2554_a771_beed_c57aba2e5eb9_TB2133_11 ₁e_{t -} ₁ + 11eab06d_2554_ce82_beed_41ed038b063b_TB2133_11 ₂e_{t -} ₂ , t = 1, 2, ….. , where e_t is an i.i.d. sequence with zero mean and variance 11eab06d_2554_ce83_beed_913b9f92a6f8_TB2133_00 ²e, represents an moving average process of order two.

The Model Yt = Et + 1et - 1

The Model Y_t = E_t + ₁e_{t -} ₁