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.

Keywords

• qualitative variables
• kendall’s τb correlation coefficient
• spearman’s ρ coefficient
• real estate attributes
• c10
• r33