Property 2 Subject Guide

Aims and Objectives

GENERAL INFORMATION, TOPIC AND REFERENCE GUIDE

Introduction to the Subject

The aim of this subject is to enable students develop quantitative skills and techniques for application in a business environment with specific reference to the property field. Students should be cognisant of specific problems in their field of study and be able to identify and apply the appropriate technique to analyse these problems. Emphasis will be placed on the use of computer based methods of analysis and students will be expected to use several of Excel's built-in statistical and mathematical functions in the development of most of the techniques introduced.

The first semester is devoted almost completely to developing a foundation for the regression model. This will require an understanding of probability, matrix algebra and mathematical expectation. In addition some of the other multivariate models suitable for analysis in property will be examined. In second semester we examine the use of selected multivariate and forecasting models, linear programming, and network analysis and how they may be applied in a property environment.

The emphasis in the course will be to present the various techniques in a manner suitable for students who have completed an introductory course in statistics. While this course is designed specifically for property students it is essentially a course in statistical techniques and their application to property.

For each area of study there will be practice exercises to develop students skills and enhance their understanding of the subject. Selected exercises will be chosen for class discussion, however, students are strongly encouraged to work through all the set problems. Where necessary brief answers will be provided.

Students are encouraged to raise questions in class on any of the set problems they are experiencing difficulty with so that these areas may be further clarified and explained.

Specific Objectives

At the end of the course, students should be able to:
• Understand and appropriately use descriptive statistics
• Develop statistical models and understand the role of theory in developing models
• Develop an understanding for the role statistics plays:
  - in describing characteristics of populations
  - in the analysis of managerial and business problems
  - in the investigatory process used for carrying out research of applied problems
• Appreciate the potential (and limitations) of statistics for practical applications to:
  - mass valuations
  - identifying demand and supply characteristics for different classes of property
  - testing of existing theories (e.g. the bid rent curve)
  
• Understand and develop optimisation models for application to property problems
• Use a variety of forecasting models as an aid to improving decision making
• Use modern spreadsheet analysis to estimate models and generate meaningful results
• Apply theoretical models in developing solutions to real world problems.
• Recognise the positive contribution of quantitative techniques in the analysis of a variety of common business problems.