Sample mean X = 0:157 was computed from a sample of size 100 generated from a MA(1) process with mean and = 0:6, 2 = 1. Construct an approximate 95% CI for . Are the data compatible with the hypothesis that = 0

Step-by-step explanation:

The variance of the sample mean for an MA(1) process and procedure is in general

Thus, in this case, we have Var(Xn) = 0.00172. An approximate 95% confidence interval for μ is then given by

This interval does not involve the value 0, so the data are not compatible with the hypothesis that μ= 0.

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step-by-step explanation:

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i graphed to on desmos.