True/False Statements, if false make them true:
1.The model Yt = Yt-1 + ut, where ut is a white noise process, is a process whose logarithm is stationary.
My idea: So the model itself is not stationary since its a random walk, but if i take the logarithm that should change right?
2. The model Yt = Yt-1+δ+ ut , where ut is a stationary ARMA(1,1) process with E(ut)=0, models a time series where the growth rates ∇Yt are uncorrelated
No idea if the second one is true.