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.