Authors Dr. Mark D. Ecker, Dr. Hans R. Isakson and Lee Kennedy delivered the attached whitepaper at the 2019 4th quarter CRN meeting in Las Vegas, NV on September 30, 2019.
Abstract
This case presents a thorough exposition of the state-of-the-art in the calculation and interpretation of Automated Valuation Model (“AVM”) Performance Metrics, including the Forecast Standard Deviation (“FSD”), confidence scores, vertical and horizontal equity and error buckets. It also discusses the Failure Rate, Failure Magnitude, and Failure MAPE metrics, which focus on tails of an AVM’s distribution of errors. In addition, this case demonstrates the calculations and relationships between the AVM Performance Metrics using a regression model and property sales from a medium-sized, midwestern, college city.
Download the whitepaper by clicking on the link below: