Question: Discuss the dependent variable and independent variables. Explain why you think they are related. (CONSIDER DEPENDENT AS HOME PRICE AND INDEPENDENT AS GDP and INFLATION)

Discuss the dependent variable and independent variables. Explain why you think they are related. (CONSIDER DEPENDENT AS HOME PRICE AND INDEPENDENT AS GDP and INFLATION)

  1. Describe the relationship between variables by using scatter plot, computing correlation coefficient, constructing a multiple linear regression model.
  2. Report the regression results, significance testing results. Interpret the results.
  3. Conclusion.

Date GDP house price Inflation
1/1/2012 3.3 310.04 -0.466
4/1/2012 1.8 308.63 -0.225
7/1/2012 0.7 312.75 0.065
10/1/2012 0.4 315.19 0.626
1/1/2013 3.5 316.77 0.989
4/1/2013 0.6 321.61 1.061
7/1/2013 3.2 326.24 1.471
10/1/2013 2.9 328.85 1.896
1/1/2014 -1.4 331.58 2.386
4/1/2014 5.2 337.99 2.899
7/1/2014 4.7 342.9 3.19
10/1/2014 1.8 345.67 3.071
1/1/2015 3.3 349.48 2.643
4/1/2015 2.3 355.16 3.141
7/1/2015 1.3 360.2 3.39
10/1/2015 0.6 363.12 3.288
1/1/2016 2.4 366.46 3.343
4/1/2016 1.2 373.33 3.992
7/1/2016 2.4 379.98 4.382
10/1/2016 2 382.94 4.876
1/1/2017 1.7 385.74 5.497
4/1/2017 2 394.37 5.758
7/1/2017 3.4 400.46 6.142
10/1/2017 4.1 403.79 6.818
1/1/2018 2.8 409.47 7.588
4/1/2018 2.8 417.04 8.166
7/1/2018 2.9 422.12 8.552
10/1/2018 0.7 423.58 8.961
1/1/2019 2.2 428.3 9.188
4/1/2019 2.7 435.43 9.857
7/1/2019 3.6 440.98 10.144
10/1/2019 1.8 444.9 10.543
1/1/2020 -4.6 450.06 10.946
4/1/2020 -29.9 454.53 10.445
7/1/2020 35.3 462.47 11.366
10/1/2020 3.9 472.64 11.821
1/1/2021 6.3 483.97 13.059
4/1/2021 7 510.9 14.838
7/1/2021 2.7 539.37 16.413
10/1/2021 7 558.02 18.173
1/1/2022 -1.6 578.63 20.323
4/1/2022 -0.6 618.03 22.459
7/1/2022 3.2 628.55 23.76
10/1/2022 2.7 623.66 17.596


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