Questions
STAT_V 443 202 2024W2 Activity 5: Autoregressive Processes
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(On Problem 7 of the worksheet) Identify which autocorrelation plot corresponds to each value of 𝛼 . Plot 1: Plot 2: Plot 3: Plot 4: 1: Plot 1 2: Plot 2 3: Plot 3 4: Plot 4
Options
A.0.9
B.0
C.0.5
D.-0.9
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Step-by-Step Analysis
We are asked to identify which autocorrelation (ACF) plot corresponds to each value of α, given the four plots and the answer options.
First, recall how autocorrelation behaves for different α values in simple time-series models: a large positive α (like 0.9) tends to produce strong positive autocorrelation at small lags, a moderate positive α (like 0.5) yields a noticeable but less pronounced positive autocorrelation at several lags, an α of 0 generally yields no significant autocorrelations beyond lag 0 (the ACF values beyond lag 0 hover around zero within the confidence bands), and a large negative α (like -0.9) produces strong negative autocorrelations at small lags.
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