Spatial Regression Model

A Spatial Regression Model is a statistical tool used to analyze how relationships between variables change over geographical space. Imagine trying to understand how housing prices vary between neighborhoods; a spatial regression takes into account that locations close to each other may influence each other's prices. This type of model helps identify patterns by considering geographic factors, such as distance and location, in addition to traditional variables. By doing so, it provides more accurate insights into how and why certain trends occur in different areas, leading to better decision-making in fields like urban planning and real estate.