Zillow is a home and real estate marketplace that aims to assist homeowners, home buyers, sellers, renters,realestateagents,mortgageprofessionals,landlords,andpropertymanagerslocateandshareinformationabout homes, real estate, and mortgages.Zillow uses a priority formula to estimate home and rental housingmarketvalue,termedaZestimate,usingitsdatabaseofover110millionhomesintheUnitedStates.TheZestimate is calculated from public and user submitted data.In this example we look at Zillow's estimated median sales price of homes in Ames, Iowa recorded in $ persquare foot.The first data entry is in December of 2010.The last data entry is in June of 2016.The vertical lines signify January.

Assume the time period number starts as 1 in December of 2010 and monthly data is collected until June of 2016. The time period t increases by 1 integer for each consecutive month.

What is the time period (value for t) for June of 2016?

Flag question: Question 2Question 210pts

Zillow is a home and real estate marketplace that aims to assist homeowners, home buyers, sellers, renters,realestateagents,mortgageprofessionals,landlords,andpropertymanagerslocateandshareinformationabout homes, real estate, and mortgages.Zillow uses a priority formula to estimate home and rental housingmarketvalue,termedaZestimate,usingitsdatabaseofover110millionhomesintheUnitedStates.TheZestimate is calculated from public and user submitted data.In this example we look at Zillow's estimated median sales price of homes in Ames, Iowa recorded in $ persquare foot.The first data entry is in December of 2010.The last data entry is in June of 2016.The vertical lines signify January.Figure below shows the predicted sales price of a home based on a quadratictrend(thereisnoapparentseasonalityinthisexamplesonoseasonalityisincludedintheestimatedmodel).In addition we include the output for the estimated AR(1) model.

Find the updated forecast for median sales price for Ames homes ($/sqft) for July of 2016 using the information above. This update should be based on the quadratic trend and the correlation (serial correlation) between observations. Assume the sales in June of 2016 was $118/sq ft.

Keep at least 4 decimal places in all parts of your calculations.

Residuals versus Lag Residuals (AR(1) Model) Response Median Sale Price per Square Foot Story Iowa ($/sqft) 50 40 Summary of Fit 30 RSquare 0.649712 20 RSquare Adj 0.638766 10- Residual Median Sale Price per Square Foot Story Iowa ($/sqft) Root Mean Square Error 11.86299 Mean of Response 120.1 10- Observations (or Sum Wgts) 67 -20 Analysis of Variance -30 -40 Sum of -40 -30 -20 -10 0 10 20 30 40 50 Source DF Squares Mean Square F Ratio Lag Residuals Model 2 16705.666 8352.83 59.3534 Summary of Fit Error 64 9006.748 140.73 Prob > F RSquare 0.42 C. Total 66 25712.413 0.411 <.0001 rsquare adj root mean square error parameter estimates of response observations sum wgts term estimate std t ratio prob> |t| Parameter Estimates Intercept 82.76 4.48 18.47 <.0001 term estimate std error t ratio prob>|t| Period (t) 1.72 0.30 5.65 <.0001 intercept period lag residuals>