Amber Pickett

9-7-14
2nd period
Regression Project
What happened to the prices of houses? You can never have enough
money these days. It seems that the price of everything has gone up, but especially
houses. I remember listening to the stories my dad would tell me about rent. Just $250 a
month! And if you compare that to todays rate, you would be over the moon about that
deal. As you can tell I chose to compare the price of houses over the decades. You would
be surprised at the results on this topic. This data will take you back in time to show you
what prices were like in certain time periods. It not only shows you directly what houses
cost, but you can compare the prices to todays and use that ratio to compare to other
objects in those years. It is very interesting to see how our grandparents lived and how we
live today! Just pay attention to the difference in the pricing.

The Prices of Houses Over the Years

350,000
300,000
250,000
200,000
Average Price of House 150,000
100,000
50,000
0
0

10 20 30 40 50 60

Years since 1963

The graph above is showing you the visual for what the regression equation is.
4

y=1.431236 x + .0119462982 x .20347574 x +3.852673373 x +15.61431272

And r 2=.9783975162

The slope that is modeled here is my a value which is

1.431236 4 this shows the slope because the regression I chose that was the best fit
was the Quart Regression. Which means subscript

is showing the quart regression.

But in terms of what the slope means in relation to the graph is essentially how much,
value whys, the price goes up. For example if we were to use the actual years instead of
smaller values to represent the years our slope would come out to 6515.846308.This is
showing us that each year the prices of houses go up by about $6,515.85. This would
explain how housing prices go up by almost $20,000 each year. The r 2=.9783975162
is showing us how close the regression was. Determining accuracy in a regression is
based off how close to the value 1 the number is. Our value came out to be less than .03
away from a perfect fit. Therefore was the best choice for our regression because it was
the closest to 1.
Looking up at the graph, we could predict the pricing of houses that were in
between the years we calculated for. Three values for the x and y values that would fit
best with the regression would have to be, (20, 90,000), (30, 152,000), and (34, 170,000).
These three are values that did not exist in the data; they were guesses on what the prices
would be in those years.
I believe this project could be very useful for the people that work as realtors.
This could be helping them find the best deal for their client. For example they could use
the regression line as a reference to show their client if their price is less or higher than
the average price. This also would show them how the value of homes has gone up. The

better the material, the more your house is going to last and maintain its value. All and
all, this project helped me understand how prices can relate to what time period you live
in. These are crazy times we are living in.

Works Cited:
"Median Sales Price for New Houses Sold in the United States (MSPNHSUS)." - FRED.
Web. 30 Sept. 2013. <http://glenwoodsprings.co/tag/economics/>