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| A Connection between Paired Data
Analysis and Regression Analysis for Estimating Sales Adjustments Author: Joseph B. Lipscomb and J. Brian Gray Start Page: 175 Abstract: The two methods most
often recommended for obtaining market-derived adjustments utilized in the sales
comparison approach to appraisal are Paired Data Analysis and Multiple Regression
Analysis. These approaches are viewed as competing alternatives, with advocates and
detractors for each. The main purpose of this paper is to demonstrate that these two
alternatives to estimating sales adjustments are equivalent under certain circumstances.
This point of equivalence may prove to be a useful starting place for improving our
understanding of the differences between and similarities of the two methods. After
explaining the data requirements of each method, we provide a set of sufficient conditions
under which the two methods produce identical adjustment estimates. We finish with a
discussion of relative advantages and disadvantages of these two methods in estimating
sale comparison adjustments. |
