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ISYE 6402 MIDTERM PREP WITH
Question 1: Writing mathematical equation of ARMA -
GARCH
CORRECT ANSWER: see pic
Question 2: confusing fat tail and which direction skewed
CORRECT ANSWER: see pic
Question 3: why Erie wasn't stationary
CORRECT ANSWER: see pic don't be as bold about nonconstant variance as you are w/ non-constant mean and
autocovariance
Question 4: how'd you know what ARIMA to choose from this?
CORRECT ANSWER: A seasonal ARIMA model would likely
be preferred. For example, we may want to consider
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