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A Second-Order Autoregressive Model for Average Mortgage Rate Is

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A second-order autoregressive model for average mortgage rate is:
Rateᵢ = - 2.0 + 1.8(Rate)ᵢ₋₁ - 0.5 (Rate)ᵢ₋₂.
If the average mortgage rate in 2010 was 7.0, and in 2009 was 6.4, the forecast for 2012 is ________.


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Promoter

An individual or company who takes initiative to organize, finance, or promote and start up a new business venture or event.

Agent

An individual authorized to act on behalf of another, known as the principal, in dealings with third parties.

State

A political entity that possesses sovereignty and governance over a defined geographic area.

Corporations

Legal entities recognized by law as separate from their owners, with rights to enter contracts, own assets, and be liable for debts.

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