If {xt } is stationary with E [xt] = 0 and corr(xt , xt −1) = rho1, show that the best linear predictor of xt based on xt −1 is rho1xt −1. (You will need to use calculus to do this problem. Here are some hints. First, define the random variables Y = xt , X = xt −1. Consider any linear predictor Yˆ = a + bX , where a and b are any numbers. Consider the mean squared forecasting error, MSE = E [Y − Yˆ] 2 = E [Y − (a + bX )]2.

the system of inequity is

step-by-step explanation:

from the given graph it is noticed that we have two related lines. one is solid and another is dashed.

if a line passing through two points, then the equation of line is

the solid line passing through the points (0,4) and (4,0).

the related equation of solid line is .

similarly, find the related equation of dashed line. the dashed liune passing through the points (0,0) and (3,1).

the related equation of dashed line is

from the given graph it is noticed that the point (0,1) lies on the shaded region, therefore the point (0,1) must be satisfied by the related equations.

check the related equations by the point (0,1).

this statement is true if the sign of inequality is < instead of equality. since it is an solid line therefore the sign of inequality will be . the required inequality is

similarly, check the second related equation.

it is a dashed line, so this statement is true if the sign of inequality is > . the required inequality is

then say something, tell them they won’t respect you if you don’t even have respect for your self sweetheart you need to lay it on them, all of it : )