Hedonic Regression
Categories: Metrics, Company Management
See: Hedonic Pricing.
Hedonic regression is a mathematical and statistical method for taking data and modeling it, isolating various factors and finding how much each affects the dependent variable.
Hedonic Pricing refers to how the dependent variable (a house’s price, in this case) is affected by internal (like size) and external (like the schools nearby) factors.
Hedonic regression assumes that a dependent variable can be potentially explained by independent variables through logic and math and...stuff. Because that’s how economists roll.