Consider a stochastic process {y t } that follows an ARMA(1,1) model y t = 0.3 - 0.7y t-1 + epsilon t - 0.7 epsilon t-1 epsilon t is the white noise...

3. Consider a stochastic process {yt} that follows an ARMA(1,1) model

yt = 0.3 - 0.7yt-1 + epsilont - 0.7 epsilont-1 

epsilont is the white noise (0, 1):

Suppose the series is asymptotically stationary

(a) Compute the autocorrelation ps for all s >= 0

(b) Compute the partial autocorrelation phiss for s = 1, 2