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Question:
(a) What do you understand by these processes?
Autoregressive Distributed lag Moving Average
(b) Write down an AR(2) process and a MA(1) process.
(c) Calculate the means and variances of the dependent variables for both an AR(1) and for MA(1).
d) Distinguish and differentiate between a fixed effect model (FEM) and an error components model (ECM)?
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