TABLE 16-10 Business Closures in Laramie,Wyoming from 2007 to 2012 Were

question 35

True/False

TABLE 16-10
Business closures in Laramie,Wyoming from 2007 to 2012 were: Microsoft Excel was used to fit both first-order and second-order autoregressive models,resulting in the following partial outputs:
SUMMARY OUTPUT - 2nd Order Model
Coefficients
Intercept -5.77
X Variable 1 0.80
X Variable 2 1.14
SUMMARY OUTPUT - 1st Order Model
Coefficients
Intercept -4.16
X Variable 1 1.59
-True or False: Referring to Table 16-10,the values of the MAD for the two models indicate that the first-order model should be used for forecasting.

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Definitions:

Leverage

The use of borrowed money to supplement existing funds for purposes of investment.

Bank Investments

Financial assets purchased or held by banks, including bonds, stocks, real estate, and other securities, with the aim of generating income or capital appreciation.

Leverage Ratio

The ratio of assets to bank capital.

Reserves

Assets held by a bank or financial institution, often to meet regulatory requirements or as a safeguard against potential crises.