Property Valuation
What is 'regression analysis' in real estate market studies and how is it used?
AA. A method determining how much a property has depreciated over time
BB. A statistical technique examining how changes in independent variables (location, size, amenities) correlate with changes in property prices; used to estimate value contributions of specific features✓ Correct
CC. A real estate term for neighborhoods declining in value
DD. A technique that is not used in Hawaii real estate due to limited market data
Explanation
Multiple regression analysis is a statistical method used in mass appraisal and market research to identify how property characteristics (square footage, bedroom count, location, age, condition) affect sale prices. It can quantify the market value of specific features.
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