Regression Analysis with Your HP-12C

摘要

When deriving a value estimate, we appraisers may find it insufficient to rely solely on paired sales analysis or on developing a sample of arrayed comparable sales and calculating the standard deviation. Although good, it may not seem great. Greater statistical precision or inference may be offered using one characteristic of the comparable sales and correlating it to respective sale prices of the comparables. An alternative to this is linear regression analysis, which provides more substantial evidence of market-derived adjustments than using only two sales. Is expensive, complicated computer software needed? Absolutely not, just use your trusty HP-12C calculator. We will use this inexpensive hand-held calculator to demonstrate the use of simple linear regression in deriving market-based adjustments. This example includes all the keystrokes on the calculator in order to assist those who have not previously used regression techniques. Technical jargon has been avoided as much as possible.