All Flashcards
Iaao standards recommend inspections every ___ years
6
A ____ _____ helps evaluate what data to collect and the best way to collect it
Pilot study
Mailing questionnaires, telephone, personal contact, and trade publications are all methods for obtaining ___ and ____ data
Income , expense
Square foot area is considered what type of data?
Continuous (quantitative)
Condition rating is considered what kind of data?
Discrete (qualitative)
What type of data has only 2 options. Yes or no
Binary
Natural log of 150
5.011
Converting a discrete variable to relative values or numerical ratings is termed ________ transformation
Scalar (CDU of AV to 9)
What type of transformation helps address the interactive relationship of a size related variable with quality related variable?
Multiplicative
The division of one variable by another (sq ft by # of rooms) is a ____ transformation
Quotient
Both mass and single appraisal use
3 basic approaches to value
First step in the mass appraisal process
Definition of problen
3 types of data that must be collected in analyzing the market
General
Specific
Comparative
Identifying supply and demand factors that best explain values in a market and expressing them in an equation is called model _____
Specification
Developing adjustment weights or coefficients is part of model ______
Calibration
Price, price of related commodities, consumer tastes and preference, consumers income, and consumer expectations are
5 determinants of demand
Price, availability and cost of related goods, technology are
3 determinants of supply
V=bo + (b1*X1) is the model structure for a
Additive model
_____ models assume that the impact of property characteristics upon value is interactive
Multiplicative
______ or ______ areas are broad geographic areas subject to similar economic influences
Market, economic
Sub-areas or _____ are groups of properties that share similar location and amenities
Neighborhoods
_______ ______ are used primarily in the development of MRA models, while _______ are used to develop regression variables
Market areas, sub-areas
A method of stratification operating on the principle of minimizing differences within groups and maximizing differences among groups is known as
Cluster analysis
______ are those values that include given percentages of the data set
Percentiles
_______ show the relationship between two qualitative variables
Cross-tabulations
_______ can be used to show several variables simultaneously
Polygons (Line charts)
The analysis of a continuous variable with two qualitative variables can be accomplished using ____ ______or _____ ______
Contingency tables, 3D plots
In testing variables, two primary statistical tests can be used. However a _________ test assumes that the date is normally distributed, while a _______test requires no assumption about the distribution of the data
Parametric, non parametric
One of the most common statistical test that is used to determine whether the mean equals a given value is
T-test
_____ ______ are valuable to assessors, because they provide meaningful information about the probable range of the true measures of central tendency
Confidence intervals
The ____ model is the most flexible, and the most difficult to calibrate
Hybrid (generic)
COV formula
Standard deviation/mean x 100
Calculate COD
Average absolute deviation from median / n then divided by median x 100
PRD formula
Mean/weighted mean
Percentile formula
K= p(n)+p
Confidence interval formula
Mean+-tstat(Sx/sqrt n)
PRD formula
Mean/weighted mean
Sales ratio formula
Appr value/sales price
The preferred measure of assessment level and most ratio studies is the
Median
Which measure of central tendency ways each ratio and proportion to its sale price
Weighted mean
The _______ is the most widely used measure of uniformity in ratio studies
COD
The _______ expresses the standard deviation as a percentage, making comparisons among groups easier
COV
The predictive power of the coefficient of variation depends on the extent the data is
Normally distributed
A scatter diagram depicting the relationship between sales ratio and effective age that portrays a downward sloping trend indicates a ______ correlation showing ______ ratios for all the residences
Negative, lower
The price related differential is calculated by dividing the ______ by the _______
Mean, weighted mean
PRD’s greater then 1.03 indicates relative _______ appraisal of higher value parcels while PRD’s less than .98 indicates relative _______ appraisal of higher value parcels
Under, over
In the cost approach model, construction costs represent the ______ side of the market, while depreciation represents the _______ side of the market.
Supply, demand
The first step and specifying cost models is to _______ improvements into homogeneous groups
Stratify
And developing a cost table, a _________ ______ can be used to develop the relationship between the cost per square foot at area
scatter diagram
Adjustments for variations for bass specifications of the cost model can take the form of _______, dollars per square foot, other per-unit costs, or _______ dollar costs
Multipliers, lump sum
What three types of sales should be excluded with deriving depreciation schedules from the market
Mixed-use parcels, parcels with additional buildings, parcels with extreme land to building ratios
After plotting percent good or accrued depreciation against effective age a curve can’t be fitted to the data using any water the following three ways
Visually by head, using graphics software, using multiplicative or non-linear MRA
Market calibration of cost models can be best accomplished by using ______or through the use of ______
Ratio studies, MRA
Expected increase in future home prices would most likely _____ the current demand for owner occupied residential property
Increase
Data mailers are most frequently used
Verify existing property data
Scalar values are best centered on 1.00 in
Multiplicative models
What statistical technique would be most appropriate for grouping similar subdivisions for modeling purposes
Cluster analysis
Average percentage deviation from the median best defines what
COD
The IAAO standards for the COD for older, heterogeneous residential property is
15.0 or less
Assessors need skills and single property appraisal to
Defend values
In a statistical test, this statement or conclusion that is excepted in the absence of sufficient evidence to the contrary is known as the
Null hypothesis
Consider the following ratios; .89, .96, 1.08, 1.14, 1.2. What is the coefficient of variation
COV=SD/mean
12.1
In mass appraisal, the sales comparison approach uses either the ______, ______or ______model formats to arrive at final value estimates
Additive, multiplicative, or hybrid
________ is a statistical technique for estimating unknown data based on known and available data
MRA
In regression statistics the _______is the ratio of a regression coefficient to it standard error (The higher the ratio, the more significant the variable)
T-value
In an additive MRA model b0 represents the _____ and X1, X2 represents the __________
constants, independent variables
The successful application of MRA models in mass appraisal require accurate ___________ data, adequate sales, good model building skills and variables to capture significant ______ influences.
property characteristics, location
The regression statistic ______ is the percentage of the variation in sales price explained by the model.
R-square
In regression statistics, the standard deviation of the regression error is termed the __________.
standard error of estimate
Calibrating the model directly, not being effected by outliers, and providing separate land and building values are strenghts of
feedback
software limitations, proprietery algorithms, lacking diagnostics are limitations of
feedback
percentile formula
k=(p)(n)+p
Scalar variables using the multiplicative are centered around
1
Scalar variables using the additive are centered around
0
confidence interval formula
mean +-t-stat(Sx/sqrt/n)
PRD over 1 is slightly
regressive
Sales Ratio formula
Appr/Sales
PRD formula
mean/weighted mean
COD uses median or mean
median
COV uses median or mean
mean (SD/mean)
properties to be appraised, rights to be appraised, purpose, and date are steps of the
defining the problem
supply/demand factors correspond to model
specification
adjustments and factors correspond to model
calibration
scarce, desirable, utility, purchase power indicate
value
representation of how something works
model
Good theory, proper data analysis, and research methods are requirements of
model building
V=b0+(b1*X1) is what type of model
additive
V=R0SIZEF1*F2 is what type of model
multiplicative
V=GQ((P1Q1)+(Pl*Ql) is what type of model
hybrid (generic)
interactive model that multiplies together (log linear)
multiplicative
Variables independent of each other so you can ad together
additive
Most difficult model to calibrate, most flexible
hybrid (generic)
living area, qual, age, location, features are examples of
property characteristics
discrete data is _ or more
3
an exponent to which a given base must be raised to obtain a specified number
logarithm
_____ can be used to combine subdivisions or existing neighborhoods into larger areas for statistical analysis
cluster analysis
a tabulation of the number or % of cases for each value of a variable or range of values
frequency distribution
bar chart or graphic display of a frequency distribution
histogram
most common measure of dispersion
standard deviation
scatter- what variable is on the vertical axis
dependent
scatter- what variable is on the horiz axis
independent
quantifies the degree of linear relation between two variables
correlation analysis
____ hypothesis is what I believe
null
range in which one can have a given degree of confidence that a true but unknown value lies
confidence interval
monitoring appraisal performance, identifying priorities, and developing market adjustment factors is the purpose of
ratio studies
what represents the av % difference from the median
COD
PRD less than 1
progressive
what measures vertical inequity
PRD
physical deterioration, functional utility, locational are parts of
depreciation
___ approach is based on the principle of substitution
cost
linear MRA
additive models
loglinear MRA
multiplicative
nonlinear MRA or AEP (feedack)
hybrid
what is based on the principal of least squares
MRA
In the cost approach, construction costs represent the ___ side of the market and depreciation represents the ___ side
supply, demand
cost approach is closely related to the
hybrid model
when variations in size affect sale price the _____ of valuing land is most appropriate
comparative unit method
in mra , the ______ represents the difference between the actual and predicted sales prices
RESIDUALS
Which employs the Euclidean distance metric
automated comparable sales
accuracy, stability, and explainability are aspects of
value acceptability
When size is not a significant factor of land values, the ____ lot method is appropriate
base
direct valuation, decomposable, and additive MRA are types of models used to estimate
land values from sales data
once preliminary values have been produced, an _______ is an essential first step in quality control
office review
assessment maps, valuation reports, and prc’s are needed for
field reviews
using simplified models, stepwise MRA, and constrained MRA can promote
greater understanding
Full recalibration, cyclical recal., partial recal., and prior years value and all
update strategies
r square is also called the coefficient of
determination
measure of linear correlation between 2 variables (from -1 to 1)
coefficient of correlation
enters values in order of their conribution in reducing SEE
Stepwise regression
complete and accurate data, linearity, additivity, normally distributed errors, are all
mra assumptions
dampening and smoothing are aspects of
AEP feedback
what uses VIC’s
LVRSA
what uses MRA based on vacant lot sales
Direct Valuation
the testing of new methods or procedures on a sample or test area
pilot study
was developed with the express purpose to promote and maintain a high level of public trust as well as confidence in professional appraisal practice
USPAP
Appraisal process is divided into 2 distinct types of activity:
development and reporting
relevant property characteristics are determined by
the appraiser
T or F: An appraiser must not advocate the cause or interest of any party.
True
The property as if repaired is what type of assignment condition?
hypothetical
The Preamble states that USPAP is
for appraisers and users of appraisal services.
The stated purpose of USPAP
Promote and maintain a high level of public trust in appraisal practice.
When obligated by law or regulation an appraiser must
comply with USPAP.
USPAP applies to which types of properties?
Tangible and Intangible
An appraiser has the professional responsibility
to identify the capacity in which he or she is performing.
An appraiser who provides an appraisal service that is not an appraisal, appraisal review, or appraisal consulting assignment does not have workfile obligations associated with the assignment.
true
When performing valuation services outside of appraisal practice, appraisers must be careful not to _________________ the client and other intended users about their role.
Mislead
Identify the problem
The first step in the appraisal process.
If an appraiser has appraised a property multiple times within the prior 3 years he must disclose the number of times he appraised the property to a prospective client.
true
An appraiser may use an combination of a property inspection and documentation in identifying relevant characteristics of the subject property.
true
Demand Studies
Supply Studies
Marketability Studies
Market Analysis
Site as though vacant.
Ideal Improvement
Property as Improved
Highest and Best Use Analysis
The purpose of including a signed certification in an appraisal report.
For the appraiser to acknowledge his/her ethical obligations.
If an appraiser is asked to develop an opinion of the quality of another appraiser’s work and to agree or disagree with the value conclusion:
This is a 2-Stage Assignment
STANDARD 6, Mass Appraisal, applies to:
Both real and personal property
When appraising personal property, the appraiser must analyze prior sales of the subject over what time period?
A reasonable and applicable time
Under STANDARD 8, a personal property appraiser has _________ different report options.
3
Which reports require a signed certification?
All oral and written reports covered in USPAP
Developing an opinion of value of a property as of a specific future date is:
A prospective appraisal
estimated length of time that property being appraised would have been offered on the market prior to a sale
exposure time
value is an opinion and never a
fact
is a fact or an estimate of fact
cost
becomes fact once it is stated
price
if the assignment involves appraisal, appraisal review, appraisal consulting, the appraiser must have a ____ for that assignment
workfile
Problem identification, scope of work, disclosure obligations are part of
three section rule
