The following data represents the home mortgage loan interest rates at a local bank over an eight-month period:
$$\begin{array} { c c c c }
\text { Month } & \text { Rate \%) } & \text { Month } & \text { Rate \%) } \
\hline1& 8.7 & 5 & 8.6 \
2 & 8.7 & 6 & 8.4 \
3 & 8.6 & 7 & 8.8 \
4 & 8.6 & 8 & 8.8
\end{array}$$
a. What is the forecast for month 8 using a moving average model with an AP = 4?
b. What is the forecast for month 9 using a moving average model with an AP = 6?

Question

The following data represents the home mortgage loan interest rates at a local bank over an eight-month period:
 $$\begin{array} { c c c c } 
\text { Month } & \text { Rate \%) } & \text { Month } & \text { Rate \%) } \
\hline1& 8.7 & 5 & 8.6 \
2 & 8.7 & 6 & 8.4 \
3 & 8.6 & 7 & 8.8 \
4 & 8.6 & 8 & 8.8
\end{array}$$ 
a. What is the forecast for month 8 using a moving average model with an AP = 4?
b. What is the forecast for month 9 using a moving average model with an AP = 6?

Quizplus · Accepted Answer

The Answer of The following data represents the home mortgage loan interest rates at a local bank over an eight-month period:
 $$\begin{array} { c c c c } 
\text { Month } & \text { Rate \%) } & \text { Month } & \text { Rate \%) } \
\hline1& 8.7 & 5 & 8.6 \
2 & 8.7 & 6 & 8.4 \
3 & 8.6 & 7 & 8.8 \
4 & 8.6 & 8 & 8.8
\end{array}$$ 
a. What is the forecast for month 8 using a moving average model with an AP = 4?
b. What is the forecast for month 9 using a moving average model with an AP = 6?

The Following Data Represents the Home Mortgage Loan Interest Rates