AG HBU Practice Test Section 2

Question 1

A measure of a central tendency is intended to identify
A. how the data is spread around the middle.
B. the extrapolation of the linear regression.
C. the reliability of a conclusion.
D. where the data tends to lump in the middle.

Answer 1

D. where the data tends to lump in the middle.

Question 2

A measure of dispersion is intended to identify
A. how the data is spread around the middle.
B. the extrapolation of the linear regression.
C. the reliability of a conclusion.
D. where the data tends to lump in the middle.

Answer 2

A. how the data is spread around the middle.

(Dispersion = Streuung = Spread)

Question 3

The median is best described as the
A. arithmetic average.
B. difference between the highest and lowest points in a data set.
C. single value that is the central point in a data set.
D. value that appears most often in a data set.

Answer 3

C. single value that is the central point in a data set.

Question 4

The purpose of trend analysis in marketability analyses is to
A. enhance the value of secondary information.
B. interpolate sample data from a population.
C. make forecasts about characteristics of a population based on a sample taken from that population.
D. understand and project market behavior for a population based on a sample taken from that population.

Answer 4

D. understand and project market behavior for a population based on a sample taken from that population.

Question 5

What is the mean?
A. 11,000
B. 15,000
C. 16,750
D. 20,000

Answer 5

D. 20,000

Question 6

What is the median?
A. 11,000
B. 15,000
C. 16,750
D. 20,000

Answer 6

D. 20,000

Question 7

What is the mode?
A. 11,000
B. 15,000
C. 16,750
D. 20,000

Answer 7

A. 11,000

Question 8

Which statement about a normal distribution is correct?
A. Mean = Median but Mode is irrelevant.
B. Average = Mean but Median and Mode are irrelevant.
C. Mean = Median = Mode.
D. Range = Standard Deviation = Correlation Coefficient.

Answer 8

C. Mean = Median = Mode.

Question 9

What are the three most dominant considerations in general residential situs analysis?
A. business district, shopping, and cultural opportunities
B. proximity to friends, relatives, and shopping
C. proximity to shopping, medical services, and police/fire protection
D. school district, commuting time, and shopping/entertainment linkages

Answer 9

D. school district, commuting time, and shopping/entertainment linkages

Question 10

Primary competition for a residential property must share which characteristics
listed below?
A. architectural, intellectual, and cultural
B. cultural, environmental, and commuting
C. physical, legal, and locational
D. physical, linkage, demographic, and economic

Answer 10

D. physical, linkage, demographic, and economic

Question 11

Which statement is true about inferred analysis?

A. The focus is entirely on the competitive market area.
B. The focus is only on property-specific (micro) issues and the subject property’s primary competition.
C. The focus should extend from macro considerations to micro issues.
D. The focus should extend from micro considerations to macro issues.

Answer 11

C. The focus should extend from macro considerations to micro issues.

Question 12

What is the predominant purpose in identifying the performance of the subject property’s primary competition?

A. to determine the buyer profile
B. to determine the number of unsold units
C. to measure the subject property’s history
D. to measure the subject property’s market performance

Answer 12

D. to measure the subject property’s market performance

Question 13

Which statement is true about the inventory of competitive supply?
A. It covers all residential properties within the competitive market area.
B. It covers the same general property type within the same general area.
C. It is always derived from secondary sources.
D. It must come from the same competitive market area as demand and appeal to the same market segment.

Answer 13

D. It must come from the same competitive market area as demand and appeal to the same market segment.

Page 136, part part 5

Question 14

The pro rata share method is applicable to which steps in the market analysis process?
A. all six steps
B. demand analysis and supply analysis
C. property productivity analysis and demand analysis
D. residual demand analysis and subject capture

Answer 14

D. residual demand analysis and subject capture

Part 6, page 147

Question 15

Which statement is true regarding subject capture analysis in a Level B
marketability analysis?
A. Capture analysis does NOT consider the results of property productivity analysis.
B. Capture analysis is concerned with the expected performance of the subject property.
C. Capture analysis is NOT concerned with the performance of the subject property’s primary competition.
D. Capture analysis is only concerned with the performance of the subject property.

Answer 15

B. Capture analysis is concerned with the expected performance of the subject property.

Part 3, page 74