A Success Versus Failure Prediction Model for the Real Estate Industry
Abstract
The purpose of this study was to use the Lussier (1995) generic success versus failure (S/F) prediction model to develop a real estate industry specific model (S/F = f[industry experience, age, advisors, planning, capital]). Using logistic regression analysis, the Lussier model (p = .028) and the real estate agency model (p = .001) are significant predictors of business success and failure. The Lussier model accurately predicted 84 percent of the surveyed successful and failed matched pairs agencies as being successful or failed and the real estate model predicted 74 percent. The Lussier model explained 68 percent of the variance of contributing factors to success versus failure and the real estate model explained 56 percent. Implications are discussed.
Keywords
Citation
Lussier, R.N. (2005), "A Success Versus Failure Prediction Model for the Real Estate Industry", American Journal of Business, Vol. 20 No. 1, pp. 47-53. https://doi.org/10.1108/19355181200500005
Publisher
:Emerald Group Publishing Limited
Copyright © 2005, Emerald Group Publishing Limited