Use This Information to Answer the Following Questions -Refer to the Table Above

question 49

Essay

Use this information to answer the following questions.
The following time series,provided by the Federal Loan Home Mortgage Corporation,represents weekly 30-year fixed mortgage rates.
$$\begin{array} { l c } \text { Date } & \text { Mortgage Rate (\%) } \\ \text { October 14, 2005 } & 6.03 \\\text { October 21, 2005 } & 6.10 \\\text { October 28, 2005 } & 6.15 \\\text { November 4, 2005 } & 6.31 \\\text { November 11, 2005 } & 6.36 \\\text { November 18, 2005 } & 6.37 \\\text { November 25, 2005 } & 6.28 \\\text { December 2, 2005 } & 6.26 \\\text { December 9, 2005 } & 6.32 \\\text { December 16,2005 } & 6.30 \\\text { December 23, 2005 } & 6.26 \\\text { December 30,2005 } & 6.22 \\\text { January 6, 2006 } & 6.21 \\\text { January 13, 2005 } & 6.15\end{array}$$
-Refer to the table above.Use a 4-period weighted moving average to forecast the next weekly mortgage rate.Use Solver to determine the optimal weights based on minimizing the MAD criterion.