Data on housing prices in 36 metropolitan statistical areas (MSAs) over nine years from 1986-1994 were collected and can be found in the dataset "hprice". Find a good model for the data. Explain the effect of the predictors on housing prices. It is not necessary to present every part of your analysis. Present a compact description of how you found your model in five pages or less. Please use a linear mixed model.
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Use a graphing utility to find the regression curves specified in Exercises $37-42$. Median home price The median price of single-family homes in the United States increased quite consistently during the years $1976-2000$. Then a housing "bubble" occurred for the years $2001-2010,$ in which prices first rose dramatically for 6 years and then dropped in a steep "crash" over the next 4 years, causing considerable turmoil in the U.S. economy. The table shows some of the data as reported by the National Association of Realtors. $$ \begin{array}{lr|ll} \hline \text { Year } & \text { Price (\$) } & \text { Year } & \text { Price (\$) } \\ \hline 1976 & 37400 & 2000 & 122600 \\ 1980 & 56250 & 2002 & 150000 \\ 1984 & 66500 & 2004 & 187500 \\ 1988 & 87500 & 2006 & 247500 \\ 1992 & 95800 & 2008 & 183300 \\ 1996 & 104200 & 2010 & 162500 \\ \hline \end{array} $$ a. Make a scatterplot of the data. b. Find and plot the regression line for the years $1976-2002$, and superimpose the line on the scatterplot in part (a). c. How would you interpret the meaning of a data point in the housing "bubble"?
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You have been asked to conduct a national study of urban home selling prices to determine if there has been an increase in selling prices over time. There has been some concern that housing prices in major urban areas have not kept up with inflation over time. Your study will use data collected from Atlanta, Chicago, Dallas, and Oakland, which is contained in the data file House Selling Price. Formulate an appropriate hypothesis test and use your statistical computer package to compute the appropriate statistics for analysis. Perform the hypothesis test and indicate your conclusion. Repeat the analysis using data from only the city of Atlanta.
To determine how the number of housing starts is affected by mortgage rates an economist recorded the average mortgage rate and the number of housing starts in a large county for the past 10 years. These data are listed here. Rate 8.5 7.8 7.6 7.5 8.0 8.4 8.8 8.9 8.5 8.0 Starts 115 111 185 201 206 167 155 117 133 150 a. Determine the regression line. What do the coefficients of the regression line tell you about the relationship between mortgage rates and housing starts? b. Calculate R^2 and explain it. c. Construct ANOVA table and do F-test. Explain F-test result.
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