Assignment Task:

Task

Your client Wally Wombatus from R&T Assessments P/L has asked you to report on the potential to create AVMs to estimate residential Capital Values (CVs) using comparable transactions. Using data in a set of suburbs provided, create 2 AVMs, one based on a simple indexing model and the other using a hedonic regression. Summarise the statistical suitability of the two models then test for the level of assessment, normality, uniformity and appraisal bias. Finally, apply the two models to the sample of properties to be assessed. Discuss where the models work well and where they fall down. Indicate which properties cannot be assessed using your models, explain why and note how these would be assessed. You should make a recommendation about the suitability of the two models and which you believe to be superior. 
Where possible, we will use a different set of suburbs for each group of students (e.g. tutorial groups), however, all analysis and reporting are to be individual. Data sets will include transactions for 12 months prior to the valuation date and the period after the valuation date and details of around 100 contiguous properties to be assessed. All assessed values should be assumed to refer to the pre-valuation date period.

 

Specific Steps

Step 1: Model Specification and Calibration. Two models are to be specified and estimated (calibrated). Using the transaction data from the 12 months before the date of valuation, estimate a simple regression model using indexing from the previous CV and a multiple regression (hedonic) model using whatever variables you feel are appropriate but NOT the previous CV. To pass the relevant section you will need to create both models at a basic level (for model 2 this would have at least 3 variables) and briefly (and correctly) summarise each. Your Excel workbook should include the models and data used to create them.

Step 2: Test for level of assessment, normality, uniformity and appraisal bias. There is a range of tests for these. You must address each at a minimum level to pass the relevant section. For high grades, you should include a wider range of tests. Show all your workings in the Excel workbook. Provide a summary table and discussion in the report.

Step 3: Apply the models to a range of properties and discuss the suitability of the models. Your assessments should be included in the Excel sheet with commentary in the report. You should show the assessments side by side for comparison and comment in the report where the assessments vary greatly.

Step 4: Report to your client and include recommendations. The report is short so does not need an executive summary. Concentrate on providing the outcomes, summaries, justification and recommendations. Your workings will be in the Excel workbook.

 

This Report Writing Assignment has been solved by our Report Writing Experts at UniLearnO. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

Eureka! You've stumped our genius minds (for now)! This exciting new question has our experts buzzing with curiosity. We can't wait to craft a fresh solution just for you!

  • Uploaded By : Alex Cerry
  • Posted on : June 06th, 2019

Whatsapp Tap to ChatGet instant assistance