This study considers real estate appraisal forecasting problem. While there is a great deal of literature about use of artificial intelligence and multiple linear regression for the problem, there has been always controversy about which one performs better. Noting that this controversy is due to difficulty finding proper predictor variables in real estate appraisal, we propose a modified version of ridge regression, i.e.; ridge regression coupled with genetic algorithm (GA-Ridge). In order to examine the performance of the proposed method, experimental study is done for Korean real estate market, which verifies that GA-Ridge is effective in forecasting real estate appraisal. This study addresses two critical issues regarding the use of ridge regression, i.e.; when to use it and how to improve it.
Bibliographical noteFunding Information:
T. Y. Kim’s work was supported by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education, Science and Technology (MEST) (KRF-2011-0015936).
All Science Journal Classification (ASJC) codes
- Computer Science Applications
- Artificial Intelligence