My New Blog

STATISTICAL SILLINESS
October 2nd, 2019 5:12 PM
Appraisers love to quote statistics especially Median Sales Price for a specific area, for a specific period of time. However, there are real estate statistics that cannot be used in the appraisal process such as: homes with peaked roofs sell for less than homes with flatter roofs; dwellings with red doors sell for 20% more than those with black doors; single family homes with pet doors sell for more than those without pet doors; and dwellings with nice views of the backyard sell for higher prices.
Most of these funny foibles are the result of a handful of basic statistical fallacies. Unfortunately, statistics and today's data science are not always simplistic. What appears to be true, often is not. But they are interesting although finding the assumptions wrong, brings light and awareness of how the world really works. 


Posted by Richard Wayne Abatelli on October 2nd, 2019 5:12 PMPost a Comment

Subscribe to this blog