Chapter 2 Project

For the Chapter 2 project, I learned that my house is currently worth $180,200 on zillow.com but a few years ago, before I moved in, my house was worth up to $519,000.
I then used my calculator to find a linear regression formula to calculate how long or when my house will reach a certain price and I learned that in 2017, my house can reach $100,000. Some ways that can change my prediction would be if this community becomes richer and safer, the price of the house would definitely increase.

Chapter 2 Project

Ch2 Project

 
 Zillow.com explains that the house I currently live in is worth $225,100. In 1996, when we moved in it was worth about $484,000. To find the graph I used X for the number of years and Y for the value. Then I used the quartic regression, because r² =0.96 which was the closest compared to other regression models. The quartic regression is y= 435.17x⁴-3491771.47x³+1.05x²-7.04, the house could reach a value of $100,000 in 2027. The value of the house could change depending on various factors, such as the color of the paint the other houses in the neighborhood has.

Ch 2 Project

 

Zillow.com has shown that my house $513k when we moved in on May, 2010. The price of it now (June 2012) is worth around $420k. To find what kind of regression model I used for the that, I plugged the X and Y values into the stats table. Then I clicked Stat > Calc > Lin Reg / Quad Reg / Cubic Reg / Cubic Reg. Then I entered one of those regression and clicked Y1 and Y2 and entered again. Then i can see the numbers for each regression. To see which model was best, I chose the one that was closest to 1 for R^2 and it was the Quartic Regression, so I chose that as my equation. 

My house value cannot reach $100k as the minimum house price was $379k.

My prediction can be changed if prices need to be dropped so it becomes more affordable to the general population.

Chapter 2 Project

Using the information from zillow.com, the house I live in is now worth $282,000 when I first moved in at March, 2012 . To find the model, I type in #1-10 which represent years 2002-2011; then I put the past values from 2002 through 2011 in thousands of dollars as Y. Next, i tried all four regression models(Linear, Quadratic, Cubic, Quartic) to see which model fits the best, and it turns out that Quartic regression is most accurate because the r^2 is 0.9466850693, which is closer to 1 out of the other three. My Quartic regression equation is: y= .7152x^4 + -15.47^3 + 98.25x^2 + -165.46x + 393.75. This house will never reach the value of $100,000 because the minimum value is $247,000.

The prediction of the quartic model can change if the economy, neighborhood, or conditions of the house are bad. This would to lead to downfall in prices. 

Chapter 2

According to the data provided in zillow the house that I moved into in 2002 was worth $230,000. To find the model you go to stat then edit then plug in your x values and your y values. The x values would be from 2002-2011 then the y values are from $230,000-$533,000. The quadratic regression was the best because the R was closer to 1. The quadratic regression model was Y = .47115384615439x^4+ -3779.3265345809x^3+11368322.761959x^2+-15198295709.015x+7619451108445.9. The house that I live in will never be worth 100,000 because the minimum value is 230,000. A factor that can affect the value of my house would be if more people move into the area or if there is another recession.