Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. Data in the

Question:

Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. Data in the Excel file mortgage rates.xlsx show the annual average 30-year fixed mortgage rate for 1994 to 2017, as reported by Freddie Mac.

a. Construct a graph showing the average December mortgage rate over time.

b. Forecast the average mortgage rate in 2018 using a trend projection.

c. Calculate the MAD for this forecast.

d. Check for the presence of positive auto-correlation.

e. What limitations do you foresee with this forecasting method projecting mortgage rates several years into the future?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Business Statistics

ISBN: 9780134685267

3rd Edition

Authors: Robert A. Donnelly

See More Books

Question Posted: Nov 05, 2019 05:47 AM

See More Questions

For the data in the Excel file New Account Processing, perform chisquare tests for independence to determine if certification is independent of gender, and if certification is independent of having...
Due to the housing bubble, many houses are now selling for much less than their selling price just two to three years ago. There is evidence that homeowners with virtually identical houses tend to...
For the data in the Excel file Rins Gym, find the co-variances and correlations among height, weight, and BMI calculation.
A record company needs to produce 100 gold records at one or more of its three studios. the cost of producing x records at studio 1 is 10 x; the cost of producing y records at studio 2 is 2y 2 ; the...
What present amount, at 12% interest compounded annually, is equivalent to this series of payments: Year 1-$10,000, Year 2-$9,000, Year 3- $8,000, Year 4-$7,000, Year 5-$6,000? Solve using the...
Ice slurry is being transported in a pipe (k = 15 W/m K, D i = 2.5 cm, D o = 3 cm, and L= 5 m) with an inner surface temperature of 0C. The ambient condition surrounding the pipe has a temperature...
Have you ever read in the newspapers about the types of people who engage in company misdeeds?
The records of Ellens Boutique report the following data for the month of April. Instructions Compute the ending inventory by the conventional retail inventorymethod. $99,000 Purchases (at cost)...
The security professional needs to be aware of the important security concepts that apply during software development and in the production environment. Which command in data control language...
Match the following and select the correct option. Height of Binary search tree(in worst o([log ]-1) 1 a (2n+1) case) Height of Ternary tree b O(n) Height of B-tree(when c minimum degree, -2) (log,...
Gold has long been a very popular investment choice during times of economic crisis. This has resulted in a significant increase in the price of gold per ounce in recent years. The Excel file gold...
In March 2018, Amazon passed Alphabet (Google's parent company) to become the world's second most valuable company measured by stock market capitalization. The development of the quarterly revenue by...
McDonald's lo 5 Corp. McDonald's conducts operations worldwide and is managed in three primary geographic segments: U.S.; Europe; and Asia/Pacific. Middle East and Africa (APMEA). A hybrid...
Reconsider the information given in question 40. Suppose now that the population standard deviation is known to be 1.3 strokes per round. Construct a 90% confidence interval for the population mean...
The manager in the local shoe factory wants to estimate the productivity of the midnight shift. He draws a random sample of 10 nights and records the productivity as follows: (a) Estimate the average...
A local dairy farm has just installed a new machine that pumps milk into 16-oz bottles. The manager of the farm wants to make sure that the amount of milk put in the bottles is 16 oz, so he randomly...
The trains scheduled to arrive at the New Brunswick train station at 7:35 A.M. every weekday do not always arrive at 7:35. A commuter carefully recorded the arrival time for the last 200 working days...
A large mail-order company wants to find the effect of sending catalogs to potential customers. Of the 600 potential customers who have just received the new catalogs, 123 responded with an order...
FoS Co. provides you with the following inventory balances and manufacturing cost data for the month of January: Any over- or underapplied overhead is written off to cost of goods sold at the end of...
Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...
Consider the following data from two independent samples. Construct a 90% confidence interval to estimate the difference in population means. =46 =10 n1 = 30 =53 = 12 n2 = 36
Pfizer would like to test the effectiveness of a new cholesterol medication it has recently developed. To test the effectiveness, the LDL cholesterol level of 12 randomly selected individuals was...
The new health care plan that the federal government recently implemented has caused people to become concerned that a shortage of primary care physicians, particularly in underserved rural areas,...
81. If push-down accounting is used, what amounts in the Building account appear on Duchess separate balance sheet and on the consolidated balance sheet immediately after acquisition? 82. If...
A Ltd. obtained from B. S. Ltd. a lease of some coal bearing land, the terms being a royalty of ~ 15 per ton of coal raised subject to minimum rent of ~ 75,000 per annum with a right of recoupment of...
The Linux kernel is the largest component of the Linux operating system and is charged with managing the hardware, running user programs, and maintaining the security and integrity of the whole...

Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. Data in the

Question:

Step by Step Answer:

a b n 24 t 300 y 141 ty 1525 t 2 4900 c MAD 799724 03332 ...View the full answer

Business Statistics

Students also viewed these Mathematics questions