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? […]
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, […]
I’m reading a book named “Start with Why,” by Simon Sinek. Start with Why makes the point that people who rally behind something are more motivated by a common cause, than by a common solution. Our cause is motivated by hearing, seeing, and reading about fellow appraisers’ concerns. There is anger and frustration and disappointment. […]
Statistics are infernal for a few basic reasons. Misuse of words. Using different meanings at different times. (Like ‘infer’); Assume a clever tool will give you a clever answer (like regression); The fallacy that inferential statistics works without random sampling; The worst fallacy that regression is always based on an inferential sampling process. Let’s look […]
Daddy, how do You pick comps? We asked about comp selection in today’s “big data” world. We considered why we used three comps on a form, or put six comps on an accountant’s spreadsheet. But what are the different ways appraisers use to pick comps? We can use “good judgment” to pick comps. Or we […]
We asked about comp selection in a “big data” world. Why do we still use three comps on a form, or six comps on a spreadsheet? What is the right data? It has been claimed that three comparables was used because they fit on an 8 ½” by 11” sheet of paper. For commercial work, […]