The purpose of this paper is to examine the usefulness of a heuristic expert system, to show its applicability to real‐world valuation problems, and to suggest several avenues for statistical testing.
The expert systems follow a traditional sales adjustment grid format, with sufficient data for non‐parametric testing.
The paper finds that, while non‐parametric statistics provide weaker results than traditional (e.g. hedonic regression) modeling, the technique provides a statistically testable model useful in situations with limited data and/or poorly characterized probability functions.
This paper addresses the conundrum faced by real estate valuers on the lack of statistical underpinnings of traditional heuristic models.
This is one of the first empirical studies in the valuation literature exploring statistical characterization of heuristic valuation methods.
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