Methods of analyzing qualitative variable correlation on the real estate market

Abstract

Variables occurring in a real estate market are frequently presented on scales other than interval or ratio scales. Most frequently, the scale is an ordinal (for instance - onerous, unfavourable, neutral, favourable), or possibly a nominal one. That is why the use of scales intended for quantitative attributes (such as Pearson linear correlation coefficient) is not possible. The paper presents the results of employing other coefficients (Kendall's τB and Spearman's ρ coefficients) in analyzing correlations on the real estate market. The objective of the article is to present a method of analyzing the correlation of qualitative variables (attributes) and to present the possibility of using the obtained results in the process of real estate appraisal.