Thursday, June 7, 2012

Chapter 2 Project

Using the information from, my house is worth $244,400 today, and was worth $368,000 in 2004 when we first moved in. To create this model, you need to enter the data to the STAT table. X is equal to the years starting from 2002-2011 (represented as 1-10 respectively). Y is equal to the value of the house in thousands during each year. After entering the data and checking through the 4 regression models (linear, quad, cubic,and quart), i found that the quartic regression had fit my model the best with r^2=.8265742, which was closest than all the other regressions models. The quartic regression is Y=1.197898X^4 -25.626748X^3 +168.101253X^2 -345.119463X +573.583334. the value of this house will not reach $100k. The minimum value is $251k. My prediction can change if the house gets damaged or if the value of the land goes down, causing the price of the house to drop.

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