Editing 2327: Oily House Index
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In economics, an {{w|index (economics)|index}} is a statistical measure of change in a representative group of individual data points. Common indices include NASDAQ (a measure of a range of stock prices) and a consumer price index (a measure of retail prices) | In economics, an {{w|index (economics)|index}} is a statistical measure of change in a representative group of individual data points. Common indices include NASDAQ (a measure of a range of stock prices) and a consumer price index (a measure of retail prices) | ||
β | This chart demonstrates an invented index, the " | + | This chart demonstrates an invented index, the "oily house index", which measures a ratio of oil price to average house prices, over time. |
The numerator is the average price of a new home (presumably in the US), in USD per square foot ($/sqft). It does not specify what kind of home, or where. One available metric is the [https://www.statista.com/statistics/682549/average-price-per-square-foot-in-new-single-family-houses-usa/ average price per square foot of floor space in new single-family houses in the United States] which was $118.91 in 2019. The caption refers to converting the ''mortgage'' of the new house (that is, how much the purchaser borrowed, which could be zero), while the definition simply refers to the ''new home price'' (the total value). It is not clear which of these two is used in the chart. | The numerator is the average price of a new home (presumably in the US), in USD per square foot ($/sqft). It does not specify what kind of home, or where. One available metric is the [https://www.statista.com/statistics/682549/average-price-per-square-foot-in-new-single-family-houses-usa/ average price per square foot of floor space in new single-family houses in the United States] which was $118.91 in 2019. The caption refers to converting the ''mortgage'' of the new house (that is, how much the purchaser borrowed, which could be zero), while the definition simply refers to the ''new home price'' (the total value). It is not clear which of these two is used in the chart. |