xt =1+0.5xt-1+et whereet ~i.i.d.N(2,4) What is the conditional one-step-ahead forecast (conditional. 1 answer below »

xt =1+0.5xt-1+et whereet ~i.i.d.N(2,4) What is the conditional one-step-ahead forecast (conditional mean) of x5 given x4 = 5? What is the conditional variance of xt for a given value of xt-1? What is the unconditional variance of xt?

 

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