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 average 30 year fixed mortgage rate for the month of December every year between 1989 and 2012, as reported by Freddie Mac.
a. Construct a graph showing the average December mortgage rate over time.
b. Forecast the average December mortgage rate in 2013 using a trend projection.
c. Calculate the MAD for this forecast.
d. Check for the presence of positive autocorrelation.
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:
a b c d Because d d U we fail to reject H0 and we conclude that n...View the full answer
Answered By
Nyron Beeput
I am an active educator and professional tutor with substantial experience in Biology and General Science. The past two years I have been tutoring online intensively with high school and college students. I have been teaching for four years and this experience has helped me to hone skills such as patience, dedication and flexibility. I work at the pace of my students and ensure that they understand.
My method of using real life examples that my students can relate to has helped them grasp concepts more readily. I also help students learn how to apply their knowledge and they appreciate that very much.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
