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What is Regression Analysis and How Do Appraisers Use it?

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What is Regression Analysis? 
Regression analysis is defined as a method that examines the relationship between one or more independent variables and a dependent variable by plotting points on a graph and through statistical analysis; used to identify and weight analytical factors and to make forecasts. (Dictionary of Real Estate Appraisal,4th Edition) 
Regression analysis is used by many different professions to determine the impact different variables may or may not have on a dependent variable.  For instance, some companies will use regression analysis to determine if the number of days it rains impact sales.   Any business that has access to data and can study different variables to see of there is an impact. This analysis, if performed correctly, can be very useful for businesses.


Why Do Appraisers Use it? Regression analysis is one tool or method that real estate appraisers use in or to determine value adjustments.  When appraisers use regression analysis they will compare the …