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| The most recent change in foreclosure share was +1 percent. Smith decides to base her analysis on the data and methods provided in Exhibits 4 and 5, and determines that the two-step ahead forecast for the change in foreclosure share (in percent) is 0.125, and that the mean reverting value for the change in foreclosure share (in percent) is 0.071. Is Smith correct? A. Smith is correct on the two-step ahead forecast for change in foreclosure share only. B. Smith is correct on the mean-reverting level for forecast of change in foreclosure share only. C. Smith is correct on both the forecast and the mean reverting level. |