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Hi, this portion is an excerpt from my textbook. I'm having trouble understanding what this text is trying to convey.

Partial Autocorrelation Function.PNG

Hi, this portion is an excerpt from my textbook. Can someone please explain what a PACF is in lay terms using this text. I'm having trouble understanding what this text is trying to convey. Please simplify your explanation as much as possible, including the meanings of the notations.

Partial Autocorrelation Function.PNG

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