Property Valuation
Regression analysis in the sales comparison approach helps appraisers:
ADetermine the property's depreciated cost
BStatistically identify and quantify the adjustments to be made for property differences✓ Correct
CCalculate the property's net operating income
DDetermine the highest and best use of a property
Explanation
Regression analysis is a statistical technique used in the sales comparison approach to analyze large datasets of sales and quantify market-based adjustments for differences between the subject property and comparables (e.g., the value of an extra bathroom or garage space).
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