A Apply Exponential Smoothing with W = 0 B Draw the Time Series and the Two Sets of =

question 33

Essay

a. Apply exponential smoothing with w = 0.1 and w = 0.8 to help detect the components of the following time series. $$\begin{array} { c c } \text { Period } t & y t \\\hline 1 & 40 \\2 & 45 \\3 & 44 \\4 & 47 \\5 & 48 \\6 & 50 \\7 & 52 \\8 & 51 \\9 & 48 \\10 & 47\end{array}$$ b. Draw the time series and the two sets of exponentially smoothed values. Does there appear to be a trend component in the time series?

---

Definitions:

Acceleration Clause

A contract provision that allows a lender to require a borrower to repay all of an outstanding loan if certain agreed upon conditions are not met.

Market Value

The price at which an asset would trade in a competitive auction setting, reflecting what a willing buyer would pay a willing seller.

Mortgage

A loan in which property or real estate is used as collateral. The borrower agrees to pay back the loan, with interest, over a set period of time.

Co-Sureties

Multiple parties who join together to provide surety or a guarantee for the performance or obligations of another.