Paired sales analysis and regression differ mainly in that regression:
Correct Answer
C) Uses many observations to estimate several effects at once
Why this is correct: Regression analysis is a statistical method that uses many data observations (sales) to estimate the simultaneous effect of multiple property characteristics (like size, age, location) on value. This is its key distinction from paired sales analysis, which isolates the effect of a single variable by comparing only two nearly identical sales. Why the other choices are wrong: "Cannot be applied to residential property data" is wrong because regression is commonly used with residential data. "Requires only two matched sales to isolate a variable" describes paired sales analysis, not regression. "Eliminates the need to verify individual sales" is wrong; regression still requires verified, reliable data. Exam tip: Remember: Paired sales = few sales, one variable. Regression = many sales, many variables.
Why This Is the Correct Answer
Why this is correct: Regression analysis is a statistical method that uses many data observations (sales) to estimate the simultaneous effect of multiple property characteristics (like size, age, location) on value. This is its key distinction from paired sales analysis, which isolates the effect of a single variable by comparing only two nearly identical sales. Why the other choices are wrong: "Cannot be applied to residential property data" is wrong because regression is commonly used with residential data. "Requires only two matched sales to isolate a variable" describes paired sales analysis, not regression. "Eliminates the need to verify individual sales" is wrong; regression still requires verified, reliable data. Exam tip: Remember: Paired sales = few sales, one variable. Regression = many sales, many variables.
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