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

question 10

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.a.Use exponential smoothing with a smoothing constant of 0.5 to forecast the next weekly mortgage rate.
b.Use exponential smoothing with a smoothing constant of 0.9 to forecast the next weekly mortgage rate.
c.Which of the two methods provides a more accurate forecast based on the MAD criterion?

---

Definitions:

Thematic Apperception Test

A projective psychological test involving storytelling from ambiguous images, used to uncover underlying motives, conflicts, and personality traits.

Projective Technique

A psychological assessment method where ambiguous stimuli are presented to subjects, who then project their own interpretations or feelings onto the stimuli.

Ambiguous Pictures

Images that can be interpreted in multiple ways or have unclear elements, often used in psychological assessments to explore perceptions and unconscious thoughts.

Thought

The process of considering, reasoning, or reflecting about something, which forms part of human cognition.