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 ____________________.

---

Definitions:

Late Adopters

Individuals or groups who adopt new technology, innovations, or ideas after the majority of people have done so, often cautious and skeptical about new innovations.

Innovators

Individuals or entities that introduce new ideas, methods, or products, often pioneering change and progression in their field.

Perceived Risk

The level of risk a consumer believes is associated with purchasing a particular product or service, which can influence decision-making.

Compatibility

The degree to which two or more elements can coexist or work together without conflict, often used in the context of technology, relationships, or product ecosystems.