Write down the invertibility condition for given equation

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Reference no: EM131197679

Question - Assume the following MA(1) process follows invertibility condition.

y_t = ε_t + θε_t-1, where ε_t _~ WN (0, σ²)

(i) Write down the invertibility condition for the above equation.

(ii) Now convert this MA(1) process in to a AR(∞) process.

Reference no: EM131197679

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