yt= 1.0 + 0.90yt-1 + e1t
zt= 1.0+ 1.0zt-1 +e2t
Using RATS generate 500 observations for y and z. note e1t and e2t are iid. save the generated y and z in a RATS data file (.rats) and open your data file. plot y and z and discuss the time series properties of each series. use the display command when discussing the results. all work should be done in RATS only.
Can someone help me with this? Thanks
allocate 500
set y = 0.0
equation(variance=1.0,coeffs=||1.0,0.9||) simeq y 1 0
simulate(from=2,steps=499) 1
# simeq y
print
allocate 500
set x = 0.0
equation(variance=1.0,coeffs=||1.0,1.0||) simeq x 1 0
simulate(from=2,steps=499) 1
# simeq x
print
This is what i have so far
