Comparing the Accuracy of the Minimum‐Variance Grid Method to Multiple Regression in Appraised Value Estimates

Tsong‐Yue Lai and Ko Wang ()

Real Estate Economics, 1996, vol. 24, issue 4, 531-549

Abstract: The adjustment‐grid method and the multiple‐regression method are the two most frequently used techniques in the sales comparison approach. This paper demonstrates that although both techniques provide unbiased estimators, the minimum‐variance grid estimator should result in a smaller standard deviation than the multiple‐regression estimator. A technique is also derived to estimate the confidence interval or to perform hypothesis tests for the minimum‐variance grid estimator.

Date: 1996
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https://doi.org/10.1111/1540-6229.00703

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