This is mostly a question of whether I am coding this correctly. I need to create the following time series in order to answer questions about it: Simulate an AR(2) process with μ= 2,φ1= 1.2, and φ2=−0.6 having error terms that are normally distributed white noise with mean 0 and variance 9. In order to generate this process, use the random number generation seed 2172 and a sample size of n= 200.
The homework questions ask me things about this process and are easy, but I want to make sure my code is actually simulating what it's supposed to before I move forward.
Here's what I did:
set.seed(2172) arima.sim(n=200, list(ar=c(1.2, -.6)), innov = rnorm(200, 0, 3)) + 2