Adjustment Index

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Adjustment Index

Any mathematical modification made to a data set to account and control for an exogenous situation that would otherwise distort the data. For example, temporary jobs are often created in November and December because of the Christmas season. A statistician likely will apply an adjustment index to the number of jobs created in those months so the unemployment rate is not artificially low.
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Pushed by lenders for the freshest possible data on properties, Turner also can tap into the local multiple listing service and statistically derive adjustment indexes for small geographic areas based on the percentage difference between original asking prices and selling prices.