A Second-Order Autoregressive Model for Average Mortgage Rate Is

question 91

Short Answer

A second-order autoregressive model for average mortgage rate is:
Rate_i = -2.0 + 1.8 (Rate)_i-1 - 0.5 (Rate)_i-2.
If the average mortgage rate in 2012 was 7.0,and in 2011 was 6.4,the forecast for 2014 is ________.

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Definitions:

Glucose

An uncomplicated glucose important for energy in living systems and a building block of numerous carbohydrate forms.

Somatic Sense

The sensory systems associated with the body that include touch, temperature, pain, and proprioception (sense of position and movement).

Shoulder

The joint connecting the upper limb to the torso, comprising bones, muscles, and tendons that facilitate arm movement.

Proprioception

Proprioception is the sense of self-movement and body position, often referred to as the "sixth sense," which helps the body understand where it is in space without visual cues.