Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. The data table linked below shows the 30-year fixed average mortgage rate for the month of December every year between 1987 and 2010. Use these data to complete parts a through e below.

Year Rate_(%) 1987 10.76 1988 10.82 1989 9.87 1990 9.63 1991 8.55 1992 8.24 1993 7.06 1994 7.49 1995 7.02 1996 7.2 1997 6.67 1998 6.39 1999 7.53 2000 7.57 2001 6.52 2002 6.34 2003 6.49 2004 6.29 2005 6.64 2006 6.48 2007 6.29 2008 5.44 2009 5.22 2010 5.01

k=1 k=1 k=2 k=2 k=3 k=3 n d L d U d L d U d L d U 15 1.08 1.36 0.95 1.54 0.82 1.75 16 1.10 1.37 0.98 1.54 0.86 1.73 17 1.13 1.38 1.02 1.54 0.90 1.71 18 1.16 1.39 1.05 1.53 0.93 1.69 19 1.18 1.40 1.08 1.53 0.97 1.68 20 1.20 1.41 1.10 1.54 1.00 1.68 21 1.22 1.42 1.13 1.54 1.03 1.67 22 1.24 1.43 1.15 1.54 1.05 1.66 23 1.26 1.44 1.17 1.54 1.08 1.66 24 1.27 1.45 1.19 1.55 1.10 1.66 25 1.29 1.45 1.21 1.55 1.12 1.66

a. Forecast the average December mortgage rate in 2011 using a trend projection.

(Round to two decimal places as needed.)

b. Calculate the MAD for this forecast.

(Round to two decimal places as needed.)

c. Determine the Durbin-Watson statistic.

(Round to two decimal places as needed.)

d. Identify the critical values.

dL=

dU=

(Round to two decimal places as needed.)