The Following Data Represents the Home Mortgage Loan Interest Rates

question 73

Essay

The following data represents the home mortgage loan interest rates at a local bank over an eight-month period:
$\begin{array}{|c|c|c|c|}\hline \text { Month } & \text { Rate (\%) } & \text { Month } & \text { Rate (\%) } \\\hline 1 & 8.7 & 5 & 8.6 \\\hline 2 & 8.7 & 6 & 8.4 \\\hline 3 & 8.6 & 7 & 8.8 \\\hline 4 & 8.6 & 8 & 8.8 \\\hline\end{array}$
a.What is the forecast for month 8 using a moving average model with k = 4?
b.What is the forecast for month 9 using a moving average model with k = 6?

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Definitions:

ERP

Enterprise Resource Planning, an integrated management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions.

PaaS

Platform as a Service; a cloud computing model that provides a platform allowing customers to develop, run, and manage applications without dealing with the underlying infrastructure.

SaaS

Short for Software as a Service, it is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over the internet.

B2C

Business-to-Consumer, a sales model in which businesses sell products or services directly to the final consumer.