Chapter 2 Project

The current Zestimate price of the house I am living in is $273,300. My grandpa first bought this house in 1988 for $152,000.

Linear Equation : y = -22466.67x + 551066.67

r² = .4484 

Quadratic Equation : y = -6886.36x² + 53283.33x + 399566.67

r²  = .7181

Cubic Equation :  y = 2430.85x³ - 466995.338x² + 238270.78 + 191000

r²  = .9146 

 Quartic Equation : y = 110.72x⁴ - 5.05x³ - 29168.99x² + 189552.84x + 229000 

r²  = .9168

By looking at the four different equations, the quartic equation has the strongest linear correlation because it is closer to 1. The average yearly appreciation of the house would be $6,217.39 per year. In about 20 years, the price of my current house would be $100,000. Any negative events that will happen in the neighborhood could affect the value of the house since nobody would want to live in a dangerous and unsafe area.