Exercise

# Plot the data from the simulated MA(1) model

Still consider the MA(1) model $$ Y_t == 0.05 + \epsilon_t + \theta \epsilon_{t-1}, $$ with \(|\theta| < 0\) and \(\epsilon_t ~ iid\) \(N(0,(0.1)^2)\).

The code on the right simulates 250 observations and should look familiar.

Instructions

**100 XP**

- Make a line plot of the observations in
`ma1_sim`

with the title "MA(1) Process: mu = 0.05, theta = 0.5". Label the x-axis with "time" and the y-axis with "y(t)". A line plot can be specified by setting`type = "l"`

of the`plot()`

function. - Add a horizontal line at zero.