Comparing House Prices

A. Data Used:
1930: $7145
1940: $3920
1950: $14500
1960: $18500
1970: $23400
1980: $68714
1990: $123000

B. r= .95

C. y=(867.36)(1.05)^x

D. For every 10 years the cost goes up 1.05. The cost started at 867.36.
The graph shows how the housing prices have increased and how drastically they did. Houses used to be way cheaper then they are now, many reasons could've effected this.

E. Its important to be able to understand regression graphs and scatterplots because it shows you the relationship between y and x and how one effects the other. It also tells you if its linear or exponential.

Functions

y=x
An example of x in every day life is simple interest. The graph of this function easily shows how the price would increase with the interest being added. The longer your paying for something the more interest you will end up paying.

http://www.google.com/images?client=safari&rls=en&q=simple+interest&oe=UTF-8&safe=active&um=1&ie=UTF-8&source=og&sa=N&hl=en&tab=wi&biw=1145&bih=595

http://www.google.com/imgres?imgurl=http://moneytipcentral.com/wp-content/uploads/2008/06/simple-interest-graph.jpg&imgrefurl=http://moneytipcentral.com/what-is-compound-interest&usg=__ihRc_DerzQSl0VAySZorVXFuQOA=&h=500&w=500&sz=28&hl=en&start=0&sig2=a939SKeMJPr-HrqdAS0ZXg&zoom=1&tbnid=WEyNQU1TSWbQOM:&tbnh=147&tbnw=150&ei=_7yPTICtNqi1nAf4zOzBDA&prev=/images%3Fq%3Dsimple%2Binterest%26um%3D1%26hl%3Den%26safe%3Dactive%26client%3Dsafari%26sa%3DN%26rls%3Den%26biw%3D1145%26bih%3D595%26tbs%3Disch:1&um=1&itbs=1&iact=hc&vpx=131&vpy=225&dur=2254&hovh=225&hovw=225&tx=126&ty=151&oei=_7yPTICtNqi1nAf4zOzBDA&esq=1&page=1&ndsp=15&ved=1t:429,r:5,s:0

e^x: An example of e raised to the x in every day life is compound interest. Compound interest is like simple interest. Generally you use it when taking out a loan or paying something off. The graph of a compound interest is different though. It isn't just a straight line, it curves. This curve happens because compound interest is paid on the original amount and the accumulated past interest.

http://math.about.com/library/weekly/aa042002a.htm

http://www.google.com/imgres?imgurl=http://www.tvmcalcs.com/calc_images/formulas/Simple-vs-Compound-Interest.png&imgrefurl=http://www.tvmcalcs.com/tvm/lumpsums_fv&usg=__X8yOSG3aEC_sq1aY-obfLkML02Q=&h=347&w=493&sz=8&hl=en&start=0&sig2=tSRNx8LtkmIXEZAy_-GcnQ&zoom=1&tbnid=ndHSb-oOGXe9xM:&tbnh=108&tbnw=153&ei=ar6PTODwEciRnwe9nOCzDA&prev=/images%3Fq%3Dcompound%2Binterest%26um%3D1%26hl%3Den%26safe%3Dactive%26client%3Dsafari%26sa%3DN%26rls%3Den%26biw%3D1145%26bih%3D595%26tbs%3Disch:1&um=1&itbs=1&iact=rc&dur=383&oei=ar6PTODwEciRnwe9nOCzDA&esq=1&page=1&ndsp=18&ved=1t:429,r:3,s:0&tx=46&ty=76

y=the square root of x: A real life example of the square root of x is showing the difference between cost, revenue, and profit. So if a company is making something it costs so much to produce the product. But after the product is made then revenue costs also take effect. Hopefully the product that the company is making has a higher rate of profit then it did total cost.

1. 
   
   www.snhu.edu/LCApplicationsofLinearFunctionsCostProfitRevenueHandout. doc 
   
   
   http://www.google.com/imgres?imgurl=http://www.college-cram.com/study/students/files/2010/03/Total-Revenue-and-Costs-War-Game-Inc.jpg&imgrefurl=http://www.college-cram.com/study/students/pecosjack/calculate-maximizing-profit-by-charting-demand-curve-revenue-and-costs/&usg=__oEXGC5XU0iIFXqPQr8ULFbSuD_o=&h=396&w=577&sz=31&hl=en&start=0&sig2=5-4kUt6u3FY2bE1qtW0_OA&zoom=1&tbnid=2DuaxxC-8JKj0M:&tbnh=122&tbnw=178&ei=vsGPTLPFG-SQnwejm-H2DA&prev=/images%3Fq%3Dcost%2Brevenue%2Band%2Bprofit%2Bgraphs%26um%3D1%26hl%3Den%26safe%3Dactive%26client%3Dsafari%26sa%3DN%26rls%3Den%26biw%3D1145%26bih%3D595%26tbs%3Disch:1&um=1&itbs=1&iact=hc&vpx=501&vpy=86&dur=1321&hovh=186&hovw=271&tx=152&ty=96&oei=o8GPTMKwKZLonQe1l5jlDA&esq=5&page=1&ndsp=15&ved=1t:429,r:2,s:0