Consider the average annual interest rates on 30-year fixed mortgages in the United States. The data are
Question:
a. Specify one or more promising auto regression models based on autocorrelations of this time series. Estimate each model with the available data. Which model provides the best fit to the data?
b. Use the best auto regression model from part a to produce forecasts of the average annual interest rates on 30-year fixed mortgages in the next three years.
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Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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