How does Bayesian theory relate to real estate valuation?
A father can teach his son how to execute a wrist shot in hockey. At first, the boy will struggle. After much trial and error, if he’s willing to practice, he’ll learn the technique. He won’t know the kinesiological forces at work or the names of all the muscles involved in the motion. He also won’t know the cell biology or physics at work. But he doesn’t need to know these things in order to execute the shot successfully. When testing for highest and best use of an existing office building in a neighborhood of office buildings in a city district that attracts office workers, Bayesian theory lets us make certain inferences based on observation, knowledge and common sense. We probably don’t need to perform a land-residual method for every potential use if we observe a predominant use that has come to characterize the area. A pet crematorium may be physically possible and legally permissible in a light-industrial area, but if there are no examples of similar uses in the area, which has l
A father can teach his son how to execute a wrist shot in hockey. At first, the boy will struggle. After much trial and error, if he’s willing to practice, he’ll learn the technique. He won’t know the kinesiological forces at work or the names of all the muscles involved in the motion. He also won’t know the cell biology or physics at work. But he doesn’t need to know these things in order to execute the shot successfully. When testing for highest and best use of an existing office building in a neighborhood of office buildings in a city district that attracts office workers, Bayesian theory lets us make certain inferences based on observation, knowledge and common sense. We probably don’t need to perform a land-residual method for every potential use if we observe a predominant use that has come to characterize the area. A pet crematorium may be physically possible and legally permissible in a light-industrial area, but if there are no examples of similar uses in the area, which has l
