Exhibit 13-3 the Quarterly Numbers of Applications for Home Mortgage Loans at Loans

question 30

Essay

Exhibit 13-3
The quarterly numbers of applications for home mortgage loans at a branch office of a large bank are recorded in the table below.

-Refer to Exhibit 13-3.Use simple exponential smoothing to forecast these data,requesting 4 quarters of future forecasts.Use the default smoothing constant of 0.10.Is this better than the moving average model

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Definitions:

Amino Acids

Organic compounds that combine to form proteins and are important in biology.

Steroidal

Pertaining to steroids, a large class of organic compounds with a characteristic molecular structure that includes many hormones, alkaloids, and vitamins.

Cell Membranes

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the movement of substances in and out of the cell.

Hormones

Signaling molecules released by glands which travel through the bloodstream to tissues or organs to regulate physiology and behavior.