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.

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”?

Transcribed Image Text:

Year 1976 1980 1984 1988 1992 1996 Price ($) 37400 56250 66500 87500 95800 104200 Year 2000 2002 2004 2006 2008 2010 Price ($) 122600 150000 187500 247500 183300 162500