Assignment 9 Chapter 10 : Quality Management

Question 1

Quality is :

1. doing the right things
2. doing things right
3. the achievement of the prescribed level of quality through the consistent adherence to well-designed policy, practice, and standards.
4. a measure of excellence or a state of being free from deficiencies.

Answer 1

Answer (4) a measure of excellence or a state of being free from deficiencies.

Quality is a measure of excellence or state of being free from deficiencies.

Quality Assurance is doing the right things (Option 1),

Quality Control is doing things right (Option 2),

and Quality Management is the achievement of the prescribed level of quality through the consistent adherence to well-designed policy, practices and standards (Option 3).

Question 2

The coefficient of determination (R²), the standard error of the estimate (SEE), the coefficient of variation (COV) and the t-statistic are examples of:

1. common and useful measures to provide feedback on the reliability of individual variables and the valuation model in its entirety.
2. quality control processes that apply to data collection, process control and appeal management
3. statistic that validate assessment level and uniformity
4. Both (1) and (3)

Answer 2

Answer (1) common and useful measures to provide feedback on the reliability of individual variables and the valuation model in its entirety.

The statistics listed are common and useful measures to provide feedback on the reliability of individual variables (t-statistic) and the valuation model in its entirety (the coefficient of determination (R²), the standard error of the estimate (SEE), and the coefficient of variation (COV)).

Question 3

Data Quality refers to:

1. accuracy
2. completeness
3. consistency
4. all of the above

Answer 3

Answer : (4) All of the above

Data quality refers to all three: accuracy, completeness, and consistency

Question 4

At the highest level, __________ are aligned with strategic priorities and at lower levels must be embedded in operations.

1. programmed reports and audits
2. maturity models
3. quality plans
4. quality controls

Answer 4

Answer (3) quality plans

At the highest level, quality plans are aligned with strategic priorities and at lower levels must be embedded in operations.

Option (1) is part of assuring data quality.

Option (2) is a continuum on which an organization might find itself when measuring its maturity in a certain functional area such as quality management.

Option (4) is an element of quality management.

Question 5

The purpose of quality assurance is to:

1. provide corrective tool focused on outputs and the assurance of quality.
2. create confidence that the quality plan is implemented and that the controls are working as intended.
3. provide feedback gathered throughout all the quality management processes.
4. None of the above.

Answer 5

Answer (2) create confidence that the quality plan is implemented and that the controls are working as intended.

The aim of quality assurance is to create confidence that the quality plan is implemented and controls are working as intended. Tools and feedback are part of quality assurance, but not it purpose.

Question 6

The acknowledged challenge with re-inspecting a “slice-at-a-time”, within a jurisdiction, for a given reassessment is that:

1. the potential for inequitable treatment of a sub-group of properties.
2. the difficulty in determining where to start the work program.
3. the potential for different property types within the targeted group of properties.
4. All of the above

Answer 6

Answer (1) the potential for inequitable treatment of a sub-group of properties.

The challenge with completing only a portion of a taxing jurisdiction is the potential for different (inequitable) treatment of some sub-group of properties. In multi-jurisdiction assessment agencies, the ideal would be to ensure the entire jurisdiction is updated during the assessment cycle.

Question 7

Effectively deploying greater computing power and automation should:

1. provide improved quality control through automatic error reporting
2. require increased supervision to manage the increased productivity
3. render existing quality control measures irrelevant
4. Both (1) and (3)

Answer 7

Answer (1) Provide improved quality control through automatic error reporting.

Greater computing power and automation, effectively employed should provide improved quality control through automatic error reporting and other measures.

Question 8

The information provided by ratio studies can be enhanced by:

1. adding graphs and diagrams to highlight the results of the ratio study.
2. reviewing low ASR sales to find missing data or under-classed improvements.
3. adding independent appraisals or property data samples.
4. Both (1) and (3)

Answer 8

Answer (4) Both 1 and 3

Option (1) is true: ratio studies can be augmented by graphs and diagrams to highlight results. Frequency distributions, histograms, polygons and scatter plots are all examples of helpful data displays that can be used to support a ratio study report. These graphics can help to describe the data itself and to find bias or patterns that could result in misleading results.

They can also help analysts and others to better understanding the inferences made about the population and the degree of confidence that can be placed in the results.

Option (3) is true: adding independent appraisals or property data samples into the sales ratio study or separate (complementary) studies can help improve the validity and meaningfulness of the reporting.
Where there is an inadequate number of sales and expanding time or geographic parameters or including other stratifications is not practical, independent appraisals can be used.

Option (2) would be undertaken based on the results of a ratio statistic test.

Question 9

When reviewing values, it is helpful to have a common unit of measure to compare properties. Which of the following is LEAST likely to be useful as a unit of measure for comparison purposes?

1. Value per rentable room.
2. The selling prices of all apartment buildings in the jurisdiction.
3. Sale price per square foot for all warehouses in an industrial park.
4. Selling prices of all quarter acre vacant lots in the neighbourhood.

Answer 9

Answer (2) the selling prices of all apartment buildings in the jurisdiction.

Options (1) and (3) put all properties on an equal footing for comparison…value per rentable room, and sale price per square foot. Option

(4) has a particular stratum of properties in mind – all quarter acre lots.

Option (2) could include five room walk-up apartment buildings as well as 100 unit high-rise complexes…not “apples to apples”.

A better unit of comparison would be selling price per unit.

Question 10

The process of valuation review typically does not include:

1. general valuation review.
2. value change analysis.
3. administrative review.
4. model testing.

Answer 10

Answer (3) administrative review.

The process of valuation review usually includes general valuation review, value change analysis, and model testing.

It does not typically include administrative review.