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.
Format your assignment consistent with APA guidelines.