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

*   Disadvantages: effected by extreme values

*   Median

*   Advantages:

*   Disadvantages:

*   Mode

*   Advantages:

*   Disadvantages:

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