Time Series Analysis, Stochastic Process, Volatility, Data Science.
However, as you can see, the model has four parameters to be estimated. These unknown parameters are: θ=[ μ_t, ω, α_1, β_1] The question is, how can someone use historical data to find optimal values of model parameters? Since the error terms (ϵ_t) are assumed to be conditionally i.i.d normal,