JRER  Vol. 33  No. 3 – 2011 A Comparison of Regression and Artificial Intelligence Methods in a Mass Appraisal Context Authors Jozef Zurada, Alan S. Levitan, and Jian Guan Abstract This paper describes a comparative study where several regression and artificial intelligence (AI)-based methods are used to assess properties in Louisville, Kentucky. Four regression- based methods [traditional multiple regression analysis (MRA), and three non-traditional regression-based methods, Support Vector Machines using sequential minimal optimization regression (SVM-SMO), additive regression, and M5P trees], and three AI-based methods [neural networks (NNs), radial basis function neural network (RBFNN), and memory-based reasoning (MBR)] are applied and compared under various simulation scenarios. The results indicate that non-traditional regression- based methods perform better in all simulation scenarios, especially with homogeneous data sets. AI-based methods perform well with less homogeneous data sets under some simulation scenarios. The need for unbiased, objective, systematic assessment of real property has always been important, and never more so than now. Misleading prices for so- called level-three assets, defined as those classified as hard to value and hard to sell, have reduced confidence in balance sheets of financial institutions. Lenders need assurance that they have recourse to actual value in the event of default. Investors in large pools of asset-backed securities must have the comfort of knowing that, while they cannot personally examine each asset, those assets have been valued reliably. As always, valuations determined for real property have significant tax implications for current and new owners and must be substantiated in the courtroom in extreme cases. Annual property tax at the local level, as well as the occasional levy of estate and gift tax at the federal and state levels, is a function of the assessed value. Furthermore, the dissolution of a business or a marriage and the accompanying distribution of assets to creditors and owners require a fair appraisal of any real property. In the United States, county/municipal tax assessors perform more appraisals than any other profession. Customarily they rely on a program known as Computer-