1. Consider the following difference equation:
yt = 0.8yt-1 + εt -0.5εt-1
since the subscripts do not appear in here I will rewrite this equation in words where t = "today" and t-1 = "yesterday".
y"today" = 0.8y"yesterday" + epsilon"today" - 0.5epsilon"yesterday".
My assignment is to derive the homogenous and particular solutions while showing my work. Is anyone able to help with deriving the particular solution?

Hey! We 've verified this expert answer for you, click below to unlock the details :)

I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!

Click 'insert equation' to insert equations. :) Makes things a bit easier to read. :)

y{t} = 0.8 y{t-1} + ε{t} -0.5ε{t-1}
is epsilon a function or a standin?

Looking for something else?

Not the answer you are looking for? Search for more explanations.

## More answers

Looking for something else?

Not the answer you are looking for? Search for more explanations.