Autocorrelation
Do rent prices tend to show a similar pattern when compared year-over-year? If you take the rent prices in Los Angeles and compare them to rent prices one year in the past, will you see a significant relationship? In other words, do rent prices in Los Angeles demonstrate autocorrelation?
A NumPy array of rents has been loaded for Los Angeles (la_rents), as well as the dates associated with each measurement, have been loaded for you. The packages pandas as pd, NumPy as np, Matplotlib as plt, and the stats package from SciPy have all been loaded as well.
This exercise is part of the course
Foundations of Inference in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Select all but the first twelve rents
la_rents_initial = ____
# Select all but the last twelve rents (12 month lag)
la_rents_lag = ____
# Compute the correlation between the initial values and the lagged values
____
# Check if the p-value is significant at the 5% level
____