Date 19th August 19, 2017

Assignment : Case Study - LANKSINK APPRAISALS

Submitted By : Muhammad Shabbir (Roll # 09-04-0013)

Evaluation of Appraisal Report submitted by Himlton.

After reading appraisal report, I immediately run correlation check to study the strength of relationship
between sale price of property and all other independent variables. Results indicates that Himilton
appraisal report had multiculinearity problem and was projecting wrong figures as only 3 independent
variable could met with the criteria of choosing independent variable.

After finding new independent variable, I went to run Regression model by keeping Sale Price of
Property as Dependent Variable and Location, Number of Parking & The area of building in Sqft as
independent variable.

The R2 value of the regression indicates that 73.9% of the variation in sales prices can be explained by the
factors included in this multiple liner regression model. By examining the p-value for each variable in the
model, I conclude that all variables are significant. Since the coefficient of num_park is 3414, therefore, I
concluded that each parking space should not be more than $3,450 to the value of a property. Hamilton
appraisal had assessed the value of the disputed parking space at a much higher value than the actual.