An Estimated Second-Order Autoregressive Model for Average Mortgage Rate Is $\hat { \gamma } _ { t } = - 2.5 + 1.8 y _ { t - 1 } - .5 y _ { t - 2 }$

question 107

Essay

An estimated second-order autoregressive model for average mortgage rate is: $\hat { \gamma } _ { t } = - 2.5 + 1.8 y _ { t - 1 } - .5 y _ { t - 2 }$ .If the average mortgage rate in 2003 was 7.0,and in 2002 was 6.5,the forecast for 2004 is ____________________,and for 2005 is ____________________.

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Definitions:

Cerebral Cortex

A layer of brain tissue responsible for cognitive functions, memory, and consciousness.

Primary Somatosensory Cortex

The region of the brain that processes sensory input from the body, including touch, temperature, and pain.

Somatosensory Association Cortex

A region of the brain that processes and integrates sensory information from the body to aid in understanding spatial body awareness and touch.

Trigeminal Nerve

Refers to the fifth cranial nerve, responsible for sensation in the face and motor functions such as biting and chewing.