Nonlinear multiple regression: Conjectures and considerations

Abstract

Discusses the application of multiple regression analysis (MRA) in the process of maintaining equity and consistency with the market place in valuation. Illustrates the case by giving examples using data maintained by a local valuer′s office. Outlines the uses of regression analysis in order to specify whether or not a given value is within a specified probability limit. Shows how the procedure is straightforward to use with microcomputer technology, and compares the system against the standard linear model form. Suggests that the extra time and effort required to identify non‐linearities, may not provide a sufficient justification for its use.