A Second-Order Autoregressive Model for Average Mortgage Rate Is

question 129

Short Answer

A second-order autoregressive model for average mortgage rate is:
Rate_i = -2.0 + 1.8(Rate)_i-1 -0.5 (Rate)_i-2
If the average mortgage rate in 2008 was 7.0,and in 2007 was 6.4,the forecast for 2010 is _______.

---

Definitions:

Cognitive-neurological Inhibition

Refers to the brain's ability to suppress automatic, involuntary, or competing actions or thoughts to facilitate more adaptive cognitive function.

Inhibiting Impulses

The psychological process of restraining or controlling one's immediate desires or impulses.

Superego

A component of Freud's psychoanalytic theory referring to the moral part of the mind that internalizes societal rules and standards.

Dopamine

A neurotransmitter in the brain that is involved in controlling movement and posture, as well as modulating mood, pleasure, and reward.