Business Finance
DAT565 Phoenix Houses Sold Median and Average Sale Price Analysis

DAT565

University of Phoenix

Question Description

I have already created the first part (Excel document) and attached it.

Trending Analysis

Resources:

Create an Excel® document in which you include the following:

  • Paste from "Median and Average Sale Price of Houses Sold", Price Ann sheet, the Period and Median Price columns (column A and B respectively), starting from year 1963.
  • On a third column, calculate Index, taking into assumption that for year 1984 it is 100. Format it to 1 decimal place. Name it "House Price Index."
  • For example, for year 1983, the index will be calculated based on median price of 1983 vs. 1984 (e.g. 94.2).
  • As a second example, for year 1985, the index will be calculated based on median price of 1985 vs. 1986 (e.g. 105.5).
  • On a fourth column, paste from "Annual U.S. CPI (includes CPI-U and CPI-W)", the Index column (column B) starting from 1963. Name it "Consumer Price Index."
  • Create a line chart, plotting "House Price Index" and "Consumer Price Index" for each year, starting from 1963. Year will be the X Axis. Price Index will be the Y Axis.
  • Save the Excel® document for submission.

Compose a minimum 1,050-word report in which you address the following:

  • Analyze the correlation between "House Price Index" and "Consumer Price Index."
  • Evaluate conditions of abrupt median price change and correlate to a historical event (e.g. 2006).
  • Predict the trend for "House Price Index" for the next few years.
  • Synthesize your predictions in regards to the current market conditions based on the "House Price Index" vs. "Consumer Price Index."
  • Analyze the median income increase in the last 10 to 20 years. Correlate with the graph you have created and assess your findings.

Unformatted Attachment Preview

WEEK 4 ASSIGNMENT Trending Analysis U.S. CPI-U (U = all urban consumers) Period Median Price 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 $18,000 $18,900 $20,000 $21,400 $22,700 $24,700 $25,600 $23,400 $25,200 $27,600 $32,500 $35,900 $39,300 $44,200 $48,800 $55,700 $62,900 $64,600 $68,900 $69,300 $75,300 $79,900 $84,300 $92,000 $104,500 $112,500 $120,000 $122,900 $120,000 $121,500 $126,500 $130,000 $133,900 $140,000 $146,000 $152,500 $161,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $169,000 $175,200 $187,600 $195,000 $221,000 $240,900 $246,500 $247,900 $232,100 $216,700 $221,800 $227,200 $245,200 $268,900 $282,800 $296,400 Source: U.S. Dept. of Labor, Bureau of Labor Statistics. K 4 ASSIGNMENT Trending Analysis House Price Index Consumer Price Index 18450.0 19450.0 20700.0 22050.0 23700.0 25150.0 24500.0 24300.0 26400.0 30050.0 34200.0 37600.0 41750.0 46500.0 52250.0 59300.0 63750.0 66750.0 69100.0 72300.0 77600.0 82100.0 88150.0 98250.0 108500.0 116250.0 121450.0 121450.0 120750.0 124000.0 128250.0 131950.0 136950.0 143000.0 149250.0 156750.0 165000.0 30.6 31.0 31.5 32.4 33.4 34.8 36.7 38.8 40.5 41.8 44.4 49.3 53.8 56.9 60.6 65.2 72.6 82.4 90.9 96.5 99.6 103.9 107.6 109.6 113.6 118.3 124.0 130.7 136.2 140.3 144.5 148.2 152.4 156.9 160.5 163.0 166.6 172100.0 181400.0 191300.0 208000.0 230950.0 243700.0 247200.0 240000.0 224400.0 219250.0 224500.0 236200.0 257050.0 275850.0 289600.0 of Labor, Bureau of Labor Statistics. 172.2 177.1 179.9 184.0 188.9 195.3 201.6 207.342 215.303 214.537 218.056 224.939 229.594 232.957 236.736 237.017 300000 285000 270000 255000 240000 225000 210000 195000 180000 165000 165000 150000 135000 120000 105000 90000 75000 60000 45000 30000 18450.0 19450.0 20700.0 22050.0 23700.0 25150.0 24500.0 24300.0 18450.0 19450.0 20700.0 15000 0 1963 36.7 38.8 32.4 33.4 34.8 30.6 31.0 31.5 1964 1965 1966 1967 1968 1969 1970 1971 66750.0 63750.0 59300.0 52250.0 46500.0 41750.0 37600.0 34200.0 30050.0 24300.0 26400.0 82.4 72.6 65.2 60.6 53.8 56.9 49.3 44.4 38.8 40.5 41.8 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 Chart Title 121450.0 121450.0 120750.0 116250.0 108500.0 98250.0 88150.0 82100.0 77600.0 72300.0 69100.0 66750.0 82.4 136.2 130.7 124.0 118.3 109.6 113.6 107.6 99.6 103.9 96.5 90.9 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 181400.0 172100.0 165000.0 165000.0 156750.0 149250.0 143000.0 136950.0 131950.0 128250.0 124000.0 121450.0 120750.0 177.1 172.2 166.6 163.0 156.9 160.5 152.4 148.2 144.5 136.2 140.3 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 247200.0 243700.0 240000.0 236200.0 230950.0 224500.0 224400.0 219250.0 208000.0 191300.0 181400.0 177.1 207.342 215.303 214.537 218.056 224.939 201.6 195.3 188.9 184.0 179.9 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 289600.0 275850.0 257050.0 236200.0 House Price Index Consumer Price Index 224.939 229.594 232.957 236.736 2013 2014 2015 237.017 Trending Analysis Grading Guide DAT/565 Version 1 Individual Assignment: Trending Analysis Purpose of Assignment In order to know if a process, an enhancement or a change has made any impact, it needs to be measured. It can also be compared with other metrics in order to understand if the impact has a correlation. This assignment will help students determine if a series of data points have a correlation, and if those can allow the audience to understand the impact of those correlations and the trending analysis that those convey. Resources Required Annual U.S. CPI (includes CPI-U and CPI-W) Median and Average Sale Price of Houses Sold Grading Guide Content Met Partially Met Not Met Excel Document • • • • • • 5 Paste from "Median and Average Sale Price of Houses Sold", Price Ann sheet, the Period and Median Price columns (column A and B respectively), starting from year 1963. On a third column, calculate Index, taking into assumption that for year 1984 it is 100. Format it to 1 decimal place. Name it "House Price Index." For example, for year 1983, the index will be calculated based on median price of 1983 vs. 1984 (e.g. 94.2). As a second example, for year 1985, the index will be calculated based on median price of 1985 vs. 1986 (e.g. 105.5). On a fourth column, paste from "Annual U.S. CPI (includes CPI-U and CPI-W)", the Index column (column B) starting from 1963. Name it "Consumer Price Index." Create a line chart, plotting "House Price Index" and "Consumer Price Index" for each year, starting from 1963. Year will be the X Axis. Price Index will be the Y Axis. Report • Comments: 5 Analyze the correlation between "House Price Index" and "Consumer Price Index." Copyright © 2015 by University of Phoenix. All rights reserved. 1 Trending Analysis Grading Guide DAT/565 Version 1 • • • • Evaluate conditions of abrupt median price change and correlate to a historical event (e.g. 2006). Predict the trend for "House Price Index" for the next few years. Synthesize your predictions in regards to the current market conditions based on the "House Price Index" vs. "Consumer Price Index." Analyze the median income increase in the last 10 to 20 years. Correlate with the graph you have created and assess your findings. The paper is a minimum of 1,050 words in length. Writing Guidelines Met Total Available Total Earned 10 #/10 Partially Met Not Met Comments: The paper — including tables and graphs, headings, a title page, and a reference page — is consistent with APA formatting guidelines and meets course-level requirements. .4 The paper includes properly cited intellectual property using APA style in-text citations and a reference page. .4 The paper includes paragraph and sentence transitions that are logical and maintain flow throughout the paper. .4 The paper includes sentences that are complete, clear, and concise. .4 The paper follows proper rules of grammar and usage including spelling and punctuation. .4 Assignment Total # Total Available Total Earned 2 #/10 12 #/12 Additional comments: Copyright © 2015 by University of Phoenix. All rights reserved. 2 ...
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Final Answer

Attached.

Report
Institutional Affiliation
Date

REPORT

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REPORT
Levels of inflation, research, and technology, ownership of capital equipment, availability of
products to satisfy human wants among others are some of the factors that influence the levels of
standards of living in a particular country. Cost of living is the key determinant to standards of
living; the price index explains the relationship between various price changes between products.
The price index is arranged in arrays to enable comparison between prices over a specific period
of time. An index can be a measure of the general price level in an economy. This helps
producers and other stakeholders to make pricing plans to guide wise investment.
Among other price indexes used by economists and policymakers include housing price index,
producers’ price index and the consumer price index. CPI makes use of a sample of products
prices collected periodically to reflect a general weight in the overall share of consumer
expenditure. The annual change of CPI is the measure of inflation. Regulating factors of
consumer price index include wages, salaries and pensions show changes in values. When
formulating indexes data, planning throughout the process ensures that the index reflects only the
changes in price and price only. Housing price index measures price changes in residential
commercial housing and ...

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