Market value estimation models for marine surface vessels with the use of multiple regression analysis.

Abstract

In order to determine more scientifically the value of property assisted by the Coast Guard in search and rescue incidents, regression analysis was conducted on various characteristics of vessels in order to estimate their fair market values. Data for this research were collected from the U.S. Maritime Administration, the U.S. Coast Guard, and numerous oil and steel companies. Mathematical models were developed for merchant ships, tugs, fishing vessels, petroleum-carrying ships, and petroleum-carrying barges. Little correlation could be found in the analysis of yachts. To estimate the value of yachts as well as numerous other varieties of boats, it is prudent to utilize a commercially developed data base. Use of the models along with the commercial data base should provide value estimates for approximately 90 percent of the future Coast Guard search and rescue incidents. The search and rescue data base for previous years cannot be corrected because of the precision required in the measurement of vessel attributes and the categorization of characteristics in the Coast Guard assistance reports.