<abstract xmlns="http://www.w3.org/1999/xhtml">Variables occurring in a real estate market are frequently presented on scales other than interval or ratio scales. Most frequently, the scale is an ordinal (for instance – onerous, unfavourable, neutral, favourable), or possibly a nominal one. That is why the use of scales intended for quantitative attributes (such as Pearson linear correlation coefficient) is not possible. The paper presents the results of employing other coefficients (Kendall’s <italic>τ</italic><italic>B</italic> and Spearman’s <italic>ρ</italic> coefficients) in analyzing correlations on the real estate market.The objective of the article is to present a method of analyzing the correlation of qualitative variables (attributes) and to present the possibility of using the obtained results in the process of real estate appraisal.</abstract>

Variables occurring in a real estate market are frequently presented on scales other than interval or ratio scales. Most frequently, the scale is an ordinal (for instance – onerous, unfavourable, neutral, favourable), or possibly a nominal one. That is why the use of scales intended for quantitative attributes (such as Pearson linear correlation coefficient) is not possible. The paper presents the results of employing other coefficients (Kendall’s τB and Spearman’s ρ coefficients) in analyzing correlations on the real estate market.The objective of the article is to present a method of analyzing the correlation of qualitative variables (attributes) and to present the possibility of using the obtained results in the process of real estate appraisal.

Methods of Analyzing Qualitative Variable Correlation on the Real Estate Market

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Methods of Analyzing Qualitative Variable Correlation on the Real Estate Market"}

Variables occurring in a real estate market are frequently presented on scales other than interval or ratio scales. Most frequently, the scale is an ordinal...

Methods of Analyzing Qualitative Variable Correlation on the Real Estate Market

Published Online: Mar 12, 2020

Page range: 80 - 90

DOI: https://doi.org/10.2478/remav-2020-0007

Keywords
qualitative variables, Kendall’s B correlation coefficient, Spearman’s coefficient, real estate attributes

© 2020 Krzysztof Dmytrów et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Methods of Analyzing Qualitative Variable Correlation on the Real Estate Market

Published Online: Mar 12, 2020

Page range: 80 - 90

DOI: https://doi.org/10.2478/remav-2020-0007

Keywordsqualitative variables, Kendall’s B correlation coefficient, Spearman’s coefficient, real estate attributes

© 2020 Krzysztof Dmytrów et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
qualitative variables, Kendall’s B correlation coefficient, Spearman’s coefficient, real estate attributes