Applying a CART-based approach for the diagnostics of mass appraisal models
AbstractIn this paper an approach for automatic detection of segments where a regression model significantly underperforms and for detecting segments with systematically under- or overestimated prediction is introduced. This segmentational approach is applicable to various expert systems including, but not limited to, those used for the mass appraisal. The proposed approach may be useful for various regression analysis applications, especially those with strong heteroscedasticity. It helps to reveal segments for which separate models or appraiser assistance are desirable. The segmentational approach has been applied to a mass appraisal model based on the Random Forest algorithm.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 27646.
Date of creation: 01 Dec 2010
Date of revision:
CART; model diagnostics; mass appraisal; real estate; Random forest; heteroscedasticity;
Find related papers by JEL classification:
- C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
- C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
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