As mentioned last week, the ¡­

As mentioned last week, the main exercise for Jan 31rd is: Go through Exercises 1 and 2 again, and supplement previous analyses with AIC scores, where AIC = -2 logLmax(model) + 2 dim(model). For example, simulate data from the AR(2) version of the model, and compute AIC scores for AR(m) candidates for m = 0,1,2,3,4, and see what model is selected. Include also the heteroscedastic model that uses a non-constant noise level, as in Exercise 1(c).