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?

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Definitions:

Reserve Army

In Marxist theory, refers to the pool of unemployed or underemployed laborers in capitalist societies, which can be used to depress wages or fill labor demands during economic peaks.

Charismatic Leadership

A leadership style based on the leader's personal charm and appeal, often inspiring devotion and enthusiasm among followers.

Relative Deprivation Theory

A sociological theory that posits individuals or groups feel deprived relative to other similar individuals or groups, leading to social discontent.

Strain Theory

A sociological theory that explains deviance and crime as a result of the disconnect between societal goals and the means available to achieve those goals.