Alex Tajirian, writing in Circle ID, says:
There are two types of domain name appraisers, designated here as type Ã¢â¬Å1Ã¢â¬Â and type Ã¢â¬Å0,Ã¢â¬Â with the former being appraisers who rely on a scientific approach. A large number of domain owners use the services of type Ã¢â¬Å0Ã¢â¬ÂÃ¢â¬âthe nonscientificÃ¢â¬âor do the appraisal themselves. Approaches used by scientific appraisers include regression-type statistical modeling, discounted cash-flow analysis, and reliance on the Law of Large Numbers.
In this post, Alex looks at some of the typical erroneous arguments against taking a statistical approach and provides an example from law to shed light on some success stories with statistical models that have changed peopleÃ¢â¬â¢s minds. For a concrete example, we use a study on predicting Supreme Court decision-making.
Issues addressed are Appraisal vs. Valuation, Supreme Court Decision Making Study, Common Criticisms of Statistical Models and Is Domain Appraisal Worth It?
To read all of AlexÃ¢â¬â¢s post on Circle ID, see www.circleid.com/posts/7102311_appraising_domain_names/