Housing starts. Figure 1.19 (see below) is a time plot of the number of single-f

Question

Housing starts. Figure 1.19 (see below) is a time plot of the number of single-family homes started by builders each month from January 1990 through December 2013. The counts are in thousands of homes. Time plot of the monthly count of new single-family houses started (in thousands) between January 1990 and December 2013, for Exercise 1.44. (a) The most notable pattern in this time plot is yearly up-and-down cycles. At what season of the year are housing starts highest? Lowest? The cycles are explained by the weather in the northern part of the country. (b) Is there a longer-term trend visible in addition to the cycles? If so, describe it. (c) The big economic news of 2007 was a severe downturn in housing that began in mid-2006. This was followed by the financial crisis in 2008. How are these economic events reflected in the time plot? (d) How would you describe the behavior of the time plot since January 2011?

Explanation / Answer

Time plot: The time plot is a plot that contains numeric value and are assumed to occur over range of time.

let us consider the Time plot of the number of single family homes started by builders each month from January 1990 through December 2013.

1)

The most notable pattern in this time plot is yearly up-and down cycles, from the time plot we observe thet in the year January 2004 the housing starts highest and shows at 2008 it shows lowest. The cycles are explained by the weather in the northern part of the country in January the temperature is quite high.

2)

From the above time plot we observe longer term trend, from January 1990 to January 2005 we observe increasing longer term trend of single family home started,but from 2005 to January 2013 it shows decreasing long term trend.

3)

The big economic news of 2007 was a severe downturn in housing that began in mid 2006. This was followed by the financial crisis in 2008, this all economic scenario we observe in time plot. From the time plot we observe that from the mid of 2006 the plot shows decreasing trend.

4)

Since January 2011the time plot shows quite increasing trend.

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