The median selling price of an existing home in the United States increased continuously over the period 2011-2013 at the rate of 8.5% per year from approximately $166,000 in 2011. Write down a formula hat predicts the median selling price of an existing home t years after 2011. Use your model to estimate, to the nearest $1,000, the median selling price of an existing home in 2013 and 2015
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The median selling price of an existing home in the United States increased continuously over the period 2011-2013 at the rate of 8.5% per year from approximately $166,000 in 2011. Write down a formula hat predicts the median selling price of an existing home t years after 2011. Use your model to estimate, to the nearest $1,000, the median selling price of an existing home in 2013 and 2015
The median selling price of an existing home in the United States increased continuously over the period 2011-2013 at the rate of 8.5% per year from approximately $166,000 in 2011.
The formula for continuous compounding is , where are total amount, initial amount, rate of growth and time in years, respectively.
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