For Q 157 , as per my understanding hedonic index has greatest no. Of actual transaction but answer given in book is C i. e. Repeat sales Index.
Please confirm
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A repeat sales index, as the name implies, relies on repeat sales of the same property. A particular property may sell only twice during the entire period of the index. But if there are at least some properties that have sold each quarter, the repeat sales regression methodology can use this information to create an index. Of course, the more sales, the more reliable is the index. In general, the idea of this type of index is that, because it is the same property that sold twice, the change in value between the two sale dates indicates how market conditions have changed over time.
A hedonic index does not require repeat sales of the same property. It requires only one sale. The way it controls for the fact that different properties are selling each quarter is to include variables in the regression that controls for differences in the characteristics of the property, such as size, age, quality of construction, and location.
Hence, C. Repeat Sales Index
What is the correct answer
Repeat sales or hedonic index.
Sir told in class that hedonic index requires larger transactions.