To derive the log likelihood function of an MA(1) we condition on ϵ0.
But when deriving the log likelihood function function for an AR(1) we don't.
Why not? Is it just because ϵ0 isn't found in the AR(1) equation?
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.