The Following Data Represents the Home Mortgage Loan Interest Rates

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?