The consumer loan department at Central Union Bank and Trust wants to develop a forecasting model to help determine its potential loan application volume for the coming year. Because adjustable-rate home mortgages are based on government long-term treasury note rates, the department collected the following data for 3- to 5-year treasury note interest rates for the past 24 years:

Year Rate Year Rate Year Rate 1 5.77 9 9.71 17 7.68 2 5.85 10 11.55 18 8.26 3 6.92 11 14.44 19 8.55 4 7.82 12 12.92 20 8.26 5 7.49 13 10.45 21 6.80 6 6.67 14 11.89 22 6.12 7 6.69 15 9.64 23 5.48 8 8.29 16 7.06 24 6.09 Develop an appropriate forecast model for the bank to use to forecast treasury note rates in the future and indicate how accurate it appears to be compared to historical data.

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