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D | Question 14 37.5 pts Moving Average for 30YrFixed Method Double Exponential

ID: 3053105 • Letter: D

Question

D | Question 14 37.5 pts Moving Average for 30YrFixed Method Double Exponential Smoothing for 30YFixed Method Data S0vefixed Length 228 NMissing 0 Moving Average Length 3 Accuracy Measures MAPE 201208 MAD 0.10876 Data 30vrFixed Length 228 Smoothing Constants a (evel 09 y ttrend) 0.1 Accuracy Measures MAPE 2.53128 MAD 0.13859 MSD 0.03730 MSD 0.02099 Forecasts Period Forecast Lower Upper 229 3.81333 3.52938 4.09728 out above for Moving Average lag-3 to interpret the forecast value for next period. period 229 and Confidence limits Predicted interest rate is 38% and the PI shows we can be 95% confident that next period interest rates will remain between 35 and 40% 0 The prediction interval tell us where the average value of interest rates will be. The predicted forecast is forinterest rates to increase by3.8 percent. And we can be 95% conf dent interest rates will increase by 3.5 to 4 percent Q Predicted interest rate is 3,52% and the pi shows we can be 95% confident that next period interest rates will remain between 3.5 and 4.0% D Question 15 37.5 pts Moving Average for 30YrFxed

Explanation / Answer

Solution:

According to output option (C) is the correct.

Reason: Because predicted forecast is for interest rate to increase by 3.8 percent and we can be 95 % confident interest rate will be 3.5 to 4 percent.

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