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

question 23

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 Solver to find the optimal alpha that minimizes MAD,and use exponential smoothing to forecast the next weekly mortgage rate.

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Definitions:

Best Response

In game theory, a strategy that yields the highest payoff for a player, given the strategies chosen by other players.

Simultaneous Move Game

A scenario in game theory where all players make their decisions at the same time without knowing the choices of others.

Nash Equilibrium

A concept in game theory where no player can benefit from changing strategies if the other players keep their strategies unchanged.

Low Price

Refers to the practice of setting the cost of goods or services at a minimal level, often to attract customers or compete in the market.