Page 10 - Regression Guideline for AMC

Understanding regression mechanics
• As the focus of this presenta6on is on assessing model fit, we will not be covering all of these steps in detail. Specifically, we will not be discussing bivariate regression or the differences between it and mul6ple regression. Nor will we be describing making the final adjustments to the selected comparables. Our main concern will be describing the factors most closely related with obtaining a well-­‐fiRng regression model.
• Before beginning the discussion of assessing model fit, it is useful to provide a very brief background on how regression analysis works. Understanding regression mechanics helps in the understanding of selec6ng proper6es for the analysis and data screening as well as interpre6ng the results of a regression analysis. We will also build on that background to explain evalua6ng model fit.
• To demonstrate different aspects of the process of developing a model and evalua6ng fit, we will run an example regression analysis on MLS-­‐listed proper6es in Orlando, Florida.
• In the example analysis, we will focus on the es6mated values of one of the proper6es in the Orlando database; a one story residen6al building constructed in 1994. Its MLS lis6ng indicates it has 2,914 square feet of living space, 4 bedrooms, 4 baths, a swimming pool, is bank owned, and was last sold in late 2014 for a sale price of $339,100.00
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