Page 17 - Regression Guideline for AMC
P. 17
Understanding regression mechanics
Using these characteris6cs and regression weights as well as the constant term (a = -‐3,114,867) we can es6mate the price for any property in this market including the subject property. Based on the MLS property characteris6cs of the example property and plugging these and the regression weights into the model, we obtain the es6mated predicted value:
Predicted Value = -‐3,114,867 + -‐44,529.60*(1) + 46,820.83*(4) + -‐32,781.27*(4) + 153.08*(2,914) + -‐40,025.42* (1) + 48,435.91*(1) + 1,553*(1994)
Predicted Value = $448,384.90
17
