# Autoregressive Moving-Average Simulation (First Order)

Autoregressive Moving-Average Simulation (First Order)

This Demonstration shows realizations of a first-order ARMA process , using the random variable drawn from a normal density with mean zero and variance unity. It is governed by the equation:

y

r

y=ay+br+r

i

i-1

i-1

i

i=1,…,N

N

The constant is the autoregressive constant (), and the constant is the moving-average constant (). A series of length 400 is created in every case.

a

-1<a<1

b

0<b<1