Page 45 - Regression Guideline for AMC
P. 45
MODEL STABILITY
• It could be difficult in a given market to find 280 let alone 560 proper6es to analyze. However not all 14 of these characteris6cs might be relevant in a given market. For instance, basement and basement square footage will not be applicable in coastal areas or to condominium units nor will acreage apply to condominiums. The exclusion of inapplicable characteris6cs begins to lower the number of needed proper6es for the analysis.
• As men6oned near the outset, a second way of reducing the number of proper6es needed for the mul6ple regression model is to run a preliminary set of bivariate regressions. These examine the sta6s6cal associa6on between each property characteris6c and sales price individually.
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