What does the hybrid model incorporate in its structure?

The hybrid model incorporates both additive and multiplicative terms in its structure, which allows for a more flexible and comprehensive approach to analysis in mass appraising. This combination enables the model to capture a wider range of relationships and interactions between variables, providing a more accurate representation of how different factors influence property values.

Incorporating additive terms allows the model to sum specific contributions of individual variables to the overall value, while the inclusion of multiplicative terms captures the interactions between these variables. For example, in real estate, the value of a property may not only be influenced by square footage (an additive factor) but also how different features like location and condition (multiplicative factors) work together to affect overall value.

This dual approach enhances the model's ability to reflect the complexities of real estate markets and generates better estimates for property appraisal, making it an important component in mass appraisal methodologies.