SIMULATION OF AUTOREGRESSIVE PROCESS AR(2) in R

 Here is the code in R for AR(2) process:

set.seed(2017)

X.ts <- arima.sim(list(ar = c(.7, .2)), n=1000)

par(mfrow=c(2,1))

plot(X.ts,main="AR(2) Time Series, phi1=.7, phi2=.2")

X.acf = acf(X.ts, main="Autocorrelation of AR(2) Time Series")