Simple. It’s valuation based on evidence, not belief or “good judgment.” What is “evidence”? Evidence can be anecdotal, empirical, or logical. Logical evidence is the easiest, and strongest. If A, then B must follow. We only need to agree that A is a fact, or is true, or as an assumption. Generally, there is no […]
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 […]
We know there is science in art. Musical scales. Perspective and the golden ratio. The ordered sequence of a good novel. It’s difficult to be a good artist without knowing, or at least intuitively applying the truths found in the logic. Both science and art reflect our search for the truth. Our primal human nature […]
Is the science of Logic in art? Is there art in the science of data? Ask any musician or artist. We have perspective, the golden ratio, octaves, and even measurable human body and brain responses to music, visuals, and other sensual inputs. I have never read or heard a data scientist say there is no […]
Statistics for appraisers started to become a hot topic some 15+ years ago. I was more involved with the Appraisal Institute then, and often argued that with the changes in data sources—appraisers would have to learn to apply statistics. Around 2003, the AQB (Appraiser Qualifications Board) revised qualifying education to include the requirement for Finance, […]
The new body of knowledge for valuation incorporates much of the old appraisal body of knowledge. What is the difference? The fundamental dividing line is actually simple. Editor’s Note: This is part 1 of a series. Part 2 is here. Traditional appraisal practice was developed almost 100 years ago — in a dramatically data-different world […]
An Algorithm can leverage appraiser market knowledge and experience. Algorithm combines computer power with informed human brain power. Algorithms are the key to the future of valuation work. Let’s continue on from What is an Algorithm? Part 1. The future appraiser must own competencies in the use of models, algorithms, visualization, and the delivery of […]
Can we think about critical thinking? What does it have to do with appraisal? The word is used many times in USPAP (Uniform Standards of Professional Appraisal Practice) and The Appraisal of Real Estate. However, it’s only used once each in the context of thinking. In USPAP, it’s in Advisory Opinion on Scope of work, […]
At times, it is good to ‘take stock’ of what really matters. We make new resolutions to do better. Such resolutions often fail because we avoid looking at the underlying issues. We can assume the new path should simply be a stronger more forceful repeat of the old. Or, we can be skeptic, not assume […]
Graphs and plots are good! I have used graphs in my appraisal reports for many years. There are a number of advantages: One visual is worth many words. Properly done, they demonstrate competence. They are easy to create in open-source and for-money software. Analysis speed is improved. They focus on what is important to clients. […]
Statistics can seem difficult and esoteric. Data Science is new. Each can be scary. We see traditional statistics as required material for the appraiser license. Basic inferential statistics have also been curriculum touted as “advanced” analytics for appraisers. Multiple regression, often thought of as a statistical method, is really a mathematical algorithm, which depends on […]
The legacy vs the upstart? What is the one single big difference? The traditional appraisal process is accepted. The Data Science viewpoint is new. (John Tukey predicted the impact of computer power on data analysis as an empirical science – in 1962.) Traditional appraisal has a proven legacy: It focuses on property analysis – leading […]
Editor’s Note: Why Did I Attend the RStudio Conf 2020? is a new Guest Post written by Bruce Hahn, SRA, MAI, CRE. We’re excited to hear about his recent experience at the RStudio Conf 2020. He is exploring and expanding his skills using R and RStudio to create his appraisal reports. He created his website, […]
Most of us grew up being taught pie chart statistics. In elementary school that’s how you probably learned about data and graphing. Proportions were taught by using a pie chart. This seemed relevant because it dealt with the practical problem of slicing a pie so five kids could share. Much else often is taught not […]
Inference is defined as a conclusion reached on the basis of evidence and reasoning. I have often said the biggest problem with statistics is words. (The very word statistics is used in more than one meaning – often in a misleading way.)[1] So what is logical inference, and how is it different from statistical inference? […]