How Do You Spell HEDONIC REGRESSION?

Pronunciation: [hɛdˈɒnɪk ɹɪɡɹˈɛʃən] (IPA)

Hedonic regression, pronounced /hɛˈdɒnɪk rɪˈɡrɛʃən/, is a statistical technique used to estimate the relationship between the price of a product and its attributes, such as quality or quantity. The word "hedonic" is derived from the Greek word "hedone" which means pleasure. The spelling of "hedonic" is based on its Greek origin, and the phonetic transcription highlights the stress on the second syllable. Similarly, the word "regression" is spelled according to its Latin origin and reflects the stress on the second-to-last syllable.

Meaning and Definition
Etymology
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HEDONIC REGRESSION Meaning and Definition

  1. Hedonic regression is a statistical technique used in economics and real estate analysis to estimate the relationship between the price of a good or service and its various attributes or characteristics. It is based on the concept of hedonic pricing, which assumes that the price of a product is determined by the sum of its individual components, each of which contributes to its overall value.

    In practical terms, hedonic regression involves running a regression analysis where the dependent variable is the price of a good or service, and the independent variables are the attributes that affect its value. These attributes can include physical attributes (such as size, age, location, etc.) as well as intangible or unobservable attributes (such as quality, reputation, etc.).

    By estimating the regression coefficients, one can quantify the impact of each attribute on the price of the product. This information is valuable in various contexts, such as in real estate for estimating property values based on their features or in pricing studies to understand the value consumers attach to different product attributes.

    Hedonic regression models are commonly used by economists, real estate appraisers, and market researchers to understand the factors that influence pricing decisions. These models allow for a more in-depth analysis of pricing dynamics, helping to inform decision-making, forecast prices, and evaluate the value of specific characteristics.

Etymology of HEDONIC REGRESSION

The word "hedonic regression" is derived from two main sources:

1. "Hedonic" is derived from the ancient Greek word "hēdonē" (ἡδονή), which means pleasure or desire. It is often associated with the philosophy of Hedonism, which emphasizes the pursuit of pleasure and avoidance of pain as the primary goals of life.

2. "Regression" is derived from the Latin word "regressio", which means a return or going back. In statistics, regression refers to a statistical approach for modeling the relationship between a dependent variable and one or more independent variables, characterized by the estimation of coefficients representing the relationship.

In the context of economics and statistics, "hedonic regression" refers to a modeling technique used to estimate the economic value or price of a product or service by examining its various attributes or characteristics.