What does Multiple Regression Analysis (MRA) primarily estimate?

Multiple Regression Analysis (MRA) is a statistical technique used to estimate the relationship between one dependent variable, commonly the sales price of properties, and multiple independent variables that affect that price. In the context of mass appraising, MRA helps in determining how different factors such as property characteristics, location, and market conditions collectively influence property values.

The primary objective of MRA is to analyze the impact of various known data points—such as square footage, number of bedrooms, age of the property, and other relevant attributes—on the final sales price of properties. By leveraging these relationships, appraisers can predict the price of a property based on its characteristics and the influence of similar properties that have sold in the market.

In contrast, other options do not align with the main purpose of MRA. For instance, calculating the cost of property or making adjustments for geographical location does not capture the holistic assessment of various factors affecting sales price. Furthermore, estimating property values without any data is not feasible with MRA, as the analysis relies on the availability of data to establish its predictions.