Information Capacity Database in the Rating Model on the Basis of Polish and Italian Real Estate Markets

Abstract

Preliminary data analyses in decision-making systems and procedures are very important for numerous reasons, in particular because the accumulation and analysis of large data sets is costly and time-consuming. The effective use of decision support systems, including on the real estate market, requires the elimination of noise. The authors have proposed to eliminate redundant data with the use of the modified method for evaluating the capacity of the data set, which is applied in the process of classifying the condition of real estate markets. The proposed procedure (subsystem) is an attempt to improve the effectiveness of analyses relating to the development of methods for rating real estate markets. The proposed solutions will be simulated on the example of leading real estate markets in Poland and Italy.

Genetic Algorithm as Automated Valuation Model Component in Real Estate Investment Decisions System

“…In order to determine the significance of individual attributes of real estate, the authors used a modified version of Hellwig's method based on Spearman's correlation. The heuristic method developed by Zdzisław Hellwig includes both, correlation of explanatory variables with the explained variable as well as correlations between pairs of explanatory variables (Renigier-Biłozor & Biłozor, 2016). Attributes x 1 , x 2 , x 3 , x 4 , x 5 , x 6 , x 7 , x 8 , x 9 , x 10 , x 11 , x 12 were adopted for further analysis as explanatory variables with different levels of significance Wi, determined using the authors' modification of the Hellwig method.…”