Method used to determine the value of a good or service by breaking it down into its component parts. The value of each component is then determined separately through regression analysis. For example, the value of a home can be determined by separating the different aspects of the home – number of bedrooms, number of bathrooms, proximity to schools – and using regression analysis to determine the value of each variable. One of the more widely-recognized examples of hedonic regression is the Consumer Price Index, which examines changes to the value of a basket of goods over time.