# Analyze the correlation between House Price Index and Consumer Price Index.

Analyze the correlation between House Price Index and Consumer Price Index..

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

• Paste from “Median and Average Sale Price of Houses Sold”, Price Annsheet, 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.

Click the Assignment Files tab to submit your assignment.

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

Analyze the correlation between House Price Index and Consumer Price Index.

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