Chapter 17: Statistical Analysis in Appraisal

Statistical analysis is an appraiser's tool not a substitute for judgment.

Statistical analysis involves six steps:

Defining the appropriate statistical procedure for the task at hand.

Identifying the appropriate data population.

Delineating the correct procedure for data collection.

Collecting sample data from the data population.

Applying the appropriate procedure to the collected data.

Making judgments about the nature of the data population.

Measures of central tendency

Mean

Advantages: most widely used and understood

Median

Mode

Mean

Formulation
_
i=1
X =
S Xi
n n

Keystrokes

Clear All

Enter 1st number, press E+, display shows 1

Repeat for all other numbers, the press
_
X

Measures of dispersion

Range

Formulation

Keystrokes

Application

Variance

Formulation

Keystrokes

Application

Standard deviation

Formulation

Keystrokes

Application

Average deviation

Formulation

Keystrokes

Application

Measures of Association

Correlation

Keystrokes

Application

Linear regression

Keystrokes

Application

Reliability

Multiple linear regression