How can this be? Only One? USPAP says there are three approaches. Licensing classes are organized around three approaches. There used to be “eight methods,” (Frederick Babcock, 1924), then seven (1932), then three (1960). Is it time for ONE approach? Perhaps the most important lesson today, to learn from the Babcock history, was his belief. […]
Is the science different from the old routine – “support your opinion”? It kinda sounds like the same thing. Of course. No real difference. But is it possible there a difference in the thinking process? Would a scientist think about the problem differently? First, let’s be clear on one thing. We get paid for four […]
What kind of appraiser are you? Different appraisers have different attitudes! Some have a lot of experience, others a lot of education. Others emphasize the ‘art’, while others consider themselves ‘quants’. Let’s put aside the ‘art’ versus ‘science’ discussion, where the artists say: “No computer will ever replace the appraiser”, or “No amount of education […]
In Part 1, we saw that context is important in the use of an algorithm. In Part 2 we note the role of algorithms in modern asset analytics — the data science valuation view. The “problem to be solved” is the context for the use of algorithms. But what are the benefits of algorithmic thinking? […]
What are the elephants in the room? The elephants are our beliefs. These are the beliefs we all assume to be true. Let’s look at the first of our herd of elephants: number 1 – judgment. We often hear it said that no machine can replace human judgment. Or that appraisal will always require someone […]