Statistics Research Paper Example | Topics and Well Written Essays - 500 words - 3

Statistics - Research Paper Example However, in 2008-2009 during the global economic contagion, the housing sector reported a significant decline in demand and sales, a crisis that was described by economic expert as â€Å"housing bubble† (Baker, 2007). The demand for housing and residential property significantly declined and this was followed a drastic fall in the real estate investments during the same period. After the global economic recovery in late 2009 and early 2010, housing sector posted a boost in returns. This raises the question on the effects of the GDP on the real estate investments and the sales of the houses in the United States. Although empirical studies early conducted by professional indicate that these two variables are related, such findings are insufficient in addressing the effects of predictable change in the GDP on sales and demand of house, particularly in the U.S. This research paper therefore aims at establishing the relationships between the changes in the GDP and house sales. In d etermining such relationships, this research paper will focus on literature material and the statistical inferences. The link between GDP and the change in the sales of the housing and real estate units is evidenced by the data on the performance if these two variable over time. The data from the department of labor and economics show that these two variables have a strong positive relationship. This is evidenced by the great global economic and financial crisis of 2009 that negatively affected the housing and real estate sector through the housing bubbles. These changes in the GDP and the general economic performance had an adverse effect on the volume of sales in the housing sector. A research study by Baker (2007) established that a predicted decline in GDP is reflected in the housing sector by a fall in the volume of house sales. This explained by the fact a fall the GDP is characterized a significant fall the marginal propensity to invests or save out of any