Testing the Effectiveness of Outlier Detecting Methods in Property Classification

Abstract

The introduction of the property value tax in Poland may lead to an increase in the tax burden on real estate. Pilot studies may be carried out on samples and the results should feature a high degree of certainty as to the extrapolation of the results on populations (e.g. entire municipalities). Each study may, for various reasons, include outliers in the analyzed data sets. If their presence results from measurement errors or other reasons that cause such observations not to be the result of naturally occurring processes, they should be omitted in the calculations, because they interfere with the study of the occurring regularities.

Keywords

• outlier detection
• logistic regression
• real estate market analysis
• property taxation
• c38
• h71
• r30