 Yule–Walker estimator for an autoregressive process of order one

For $X_t-\mu =\varphi (X_{t-1}-\mu )+{\epsilon }_t$, the autocovariance equation is $\gamma (1)=\varphi \gamma (0)$. Replacing both autocovariances by sample sums divided by the same $n$ yields ${\hat{\varphi }}_{YW}=\hat{\gamma }(1)/\hat{\gamma }(0)$, the lag-one sample autocorrelation function.