Hey everyone,
Looking at the example of page 680, its something i havent really seen in the past exam questions yet, but i do understand the idea behind it. Only thing is, what is the rule we apply to the characteristic equation?
Firstly am wondering, are we finding the characteristic equation of X_t or p_t? And then, im wondering if the rule here isnt the normal z^s=X_(t-s)? because in that instance, by characteristic equation would be 1=5/6z-1/6z^2 but thats not right.
The notes do mention that the characteristic equation for the difference equation is " unfortunately slightly different to the characteristic equation for the process)", does anyone know the rule??
Thanks,
Molly
Looking at the example of page 680, its something i havent really seen in the past exam questions yet, but i do understand the idea behind it. Only thing is, what is the rule we apply to the characteristic equation?
Firstly am wondering, are we finding the characteristic equation of X_t or p_t? And then, im wondering if the rule here isnt the normal z^s=X_(t-s)? because in that instance, by characteristic equation would be 1=5/6z-1/6z^2 but thats not right.
The notes do mention that the characteristic equation for the difference equation is " unfortunately slightly different to the characteristic equation for the process)", does anyone know the rule??
Thanks,
Molly