Page 34 - Regression Guideline

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Important"Terms"You"Need"to"Know"
The"end"result"of"stepwise"regression"modeling"is"the"idenJficaJon"of"the"best"subset"of" predictors"for"esJmaJng"a"sales"price"for"a"given"property."One"common"outcome"of"this" process"that"can"be"confusing"at"first"is"when"the"subset"of"best"ficng"predictors"does"not" include"all"of"the"property"characterisJcs"considered,"excluding"even"some"the"appraiser"was" certain"were"important."This"occurs"because"the"excluded"characterisJcs"were"found"to"be" staJsJcally"unrelated"to"sales"price"for"the"properJes"used"to"develop"the"regression"model." These"excluded"characterisJcs"do"not"improve"price"esJmaJon"even"though"intuiJvely,"it" might"seem"as"if"they"should.""
" This"can"be"for"two"reasons:""1)"the"property"characterisJc"simply"was"not"associated"with"the" sales"prices"of"the"properJes"examined;"or"2)"the"variaJon"in"sales"price"accounted"for"by"the" excluded"predictor"was"beser"accounted"for"by"other"property"characterisJcs"already"included" as"predictors"in"the"model"(see"“nonPindependence"of"property"characterisJcs”"above)." Whether"the"final"model"includes"only"two"or"as"many"as"ten"predictors,"the"staJsJcal"process" used"by"SAVVI"insures"that"these"are"the"strongest"set"of"predictors"for"esJmaJng"the" property"value."In"short,"you"won’t"need"to"make"further"mulJple"adjustments"to"the"model." SAVVI"analyJcs"has"already"given"you"the"best"one"by"automaJng"the"complex"processes"of" data"modeling"and"staJsJcal"analysis"into"a"fast"and"easy"way"to"meet"today’s"requirements."
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