---
title: "Auto-regressive model of order 1"
output: html_document
---

## Simulation of AR(1)

Simulate time series of length 100 from four different AR(1) models with
$\alpha_1$ equal to a) -0.9, b) -0.5, c) 0.5, d) 0.9 respectively.
For each model:

- Plot the correlogram
- Estimate the parameters
- Make predictions for 1 to 10 steps ahead.