An Estimated Second-Order Autoregressive Model for Average Mortgage Rate Is $\tilde { y } _ { z } = - 3 + 2.0 y _ { t - 1 } - .75 y _ { t - 2 }$

question 211

Essay

An estimated second-order autoregressive model for average mortgage rate is: $\tilde { y } _ { z } = - 3 + 2.0 y _ { t - 1 } - .75 y _ { t - 2 }$ .If the average mortgage rate in 2004 was 6.5 and in 2011 was 6.0,the forecast for 2013 is ____________________.

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