Thursday, June 7, 2012
Chapter 2 Project
According to Zillow.com, my house is worth $147,000.00 in year 2012. Based on the data that zillow.com provided, I repeatedly did regression models to test which function would have the best correlation coefficient of determination(R^2 = .802), which was Quadratic. I got a Regression Model
Y= .306X^4 - 7.16X^3 + 46.44X^2 - 64.96 + 322.
The model allowed me to predict how much my house was worth when I first moved in 1997, which was $1,862,100.00.
According to this model, my house will never reach below $100,000.00 because the minimum extrema is $175,513.00.
There are some things that could change the value of the house to a value that does not match the model, such as : economic set backs, commercial intervention such as commercial businesses that makes the area a popular site to visit.