(Requires Appendix Material): Show That the AR(1) Process$Y _ { t } = a _ { 1 } Y _ { t - 1 } + e _ { t } ; \left| a _ { 1 } \right|

Question

(Requires Appendix Material): Show That the  AR(1) Process$Y _ { t } = a _ { 1 } Y _ { t - 1 } + e _ { t } ; \left| a _ { 1 } \right| < 1$

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The Answer of (Requires Appendix Material): Show That the  AR(1) Process$Y _ { t } = a _ { 1 } Y _ { t - 1 } + e _ { t } ; \left| a _ { 1 } \right| < 1$

(Requires Appendix Material): Show That the AR(1) Process $Y _ { t } = a _ { 1 } Y _ { t - 1 } + e _ { t } ; \left| a _ { 1 } \right| < 1$

Definitions:

(Requires Appendix Material): Show That the AR(1) Process Yt=a1Yt−1+et;∣a1∣<1Y _ { t } = a _ { 1 } Y _ { t - 1 } + e _ { t } ; \left| a _ { 1 } \right| < 1Yt​=a1​Yt−1​+et​;∣a1​∣<1

Definitions:

(Requires Appendix Material): Show That the AR(1) Process $Y _ { t } = a _ { 1 } Y _ { t - 1 } + e _ { t } ; \left| a _ { 1 } \right| < 1$