Dependent variable reconfiguration with linear regression application to the consumer preference utility index.

摘要

This inquiry was performed in an effort to provide improvement in those estimates of market value for single family residential real estate through application of multiple linear regression techniques to observed sale prices and their transformed values. Observations providing measurements of the characteristic attributes to approximately 475 single family residential real estate transactions were obtained.; The real estate parcels were measured with the utility indices under consideration, EFT2, TFT2, and MEFT. Division of the sales price by the utility measure provides a unit price for each property of interest. Transformation of the unit price in accordance with that transform of interest allows the sales price to be reconfigured. The data was stratified in accordance with the number of rooms identified as a sleeping room.; Stepwise regression was utilized to acquire an equation for estimation of the dependent variable for that strata associated with each transformation. Those characteristic attribute measurements associated with the property of interest were used as independent variables. The stratification produced unique equations to each transformation. From the associated regression equations, a fitted value for each property index and transform was estimated.; Those estimated values provided a comparison with the observed sales prices as measured by the coefficient of correlation. The transformed values provided higher correlations with the observed sales prices, although the results were not significantly diverse. Across the indices, the results were not significantly different except to those non-transformed measurements.; The transformation and index methods of the study provided measures to the utility of the property specific measures. From these measurements, properties with diverse attributes can be compared from the utility standpoint and an index for comparison can be extended to the present real estate market by utilization of unit price procedure.; Further research could encompass application to other classes of real property and development of further transformations.