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05 Statistics, Modeling and Finance > Ch 8 Amortization > Flashcards

Ch 8 Amortization Flashcards

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1
Q

“A sample produced by an unscientific, non-random selection process” is the definition of a(n) ________________ sample.

A

nonprobability. That defines a nonprobability sample – it is not a true random selection. That is the type of strategy that many appraisers have to adopt on a daily basis, as they have limited databases.

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2
Q

Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the mean rent?

A

815

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3
Q

A chart or visual representation of data relying on references to two axes” is the definition of

A

graph

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4
Q

A standard IQ test has a mean of _____ and a standard deviation of _____.

A

100, 10

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5
Q

Fractiles are intervals that total ____ of the distribution.

A

100

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6
Q

“A categorical variable indicating rank order, such as small, medium, and large” is the definition of ___________ variable.

A

ordinal

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7
Q

If a 25-year mortgage has an interest rate of 6.8% and monthly payments of $1,179.92, what was the original mortgage amount?

A
  1. 25 gn, 6.8 gi, 1,179.92 CHS PMT, PV Answer is $170,000.
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8
Q

If I put $5,000 in the bank at the beginning of each year for 15 years, at 3.0% interest – how much will I have at the end?

A

95784.41

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9
Q

In the compound interest tables, which columns deal with future values?

A

One, two, three

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10
Q

Which is an insured loan?

A

FHA

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11
Q

A condo homeowner’s association needs to build up $60,000 to replace the roofs in 5 years. They can expect 3.75% interest. How much is needed each payment if they make quarterly payments?

A

2716.07. [g] BEG 5 ENTER 4 X n, 3.75 ENTER 4 ÷ i, 60,000 CHS FV, PMT Answer is $2,716.07.

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12
Q

“A symmetrical, bell-shaped curve that represents the distribution of a population of certain types of measurements or the frequency distribution of all possible means in large samples that may be drawn from an unknown population distribution” is the definition of

A

normal curve

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13
Q

What are the monthly payments on a $234,000 mortgage at 5.8% annual interest for 20 years?

A

1649.56. 20 gn, 5.8 gi, 234,000 CHS PV, PMT Answer is $1,649.56.

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14
Q

“The standard deviation of a regression coefficient estimate” is the definition of

A

standard error. Standard errors are used in calculating a confidence interval about the arithmetic mean and the weighted mean.

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15
Q

The _______ describes the middle value in an ordered array of numerical values.

A

median

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16
Q

A 25-year mortgage, with an interest rate of 6.25%, has monthly payments of $1,253.37. What was the original mortgage amount?

A
  1. 25 g n, 6.25 g i, 1,253.37 CHS PMT, PV Answer is $190,000.
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17
Q

“The result of a sample selection process where all members of a population have the same probability of being selected” is the definition of _____________.

A

random sample

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18
Q

What is the payment on a $750,000 mortgage at 6.2% annual interest for 15 years, with annual payments?

A

78234.36. 15 n, 6.2 i, 750,000 CHS PV, PMT Answer is $78,234.36.

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19
Q

“The interaction of buyers and sellers who trade short-term money instruments” is the definition of the ________ market.

A

money

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20
Q

A property sold for $240,000 and the buyer put $50,000 down. The seller paid 2 points. How much was that?

A
  1. A point is one percent of the amount of a mortgage loan. $240,000 - $50,000 = $190,000 mortgage. $190,000 X .02 = $3,800.
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21
Q

How much should I pay today for a contract that will pay me $250,000 in 5 years, discounted at 8%?

A

170145.8

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22
Q

Here are 10 gross income multipliers. 6.9 7.2 6.5 7.3 6.4 7.0 7.3 6.8 6.8 6.9 What is the range of the GIMs?

A

0.9. 7.3 – 6.4 = .9

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23
Q

“The process of drawing conclusions about population characteristics through analysis of sample data” defines _____________ statistics.

A

inferential

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24
Q

“Quantitative techniques used to identify and measure adjustments to the sale prices of comparable properties; a variant of statistical analysis in which an appraiser interprets graphically displayed data visually or through curve fit analysis” is the definition of _____________ analysis.

A

graphic

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25
Q

If I put $3,500 in the bank at the beginning of every year for 10 years, at 4.0% interest, how much will I have at the end?

A

43702.23. [BEG] 10n, 4i, 3,500 CHS PMT FV Answer is $43,702.23

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26
Q

You could purchase an AVM from all of the following

A

Freddie Mac, Dataquick, Electronic Appraiser

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27
Q

“A programmed algorithm for systematically building a multiple linear regression model by adding signficant variables, deleting insignificant variables, or both, and then assessing the model resulting from the addition or deletion” is the definition of

A

stepwise regression analysis

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28
Q

In statistics, what is defined as “a subset of the population selected for analysis”?

A

sample

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29
Q

What’s the value today of the right to receive $38,000 in 9 years, discounted at 6%?

A

22492.14

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30
Q

Price is the __________ variable.

A

dependent

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31
Q

A branch of statistics concerned only with characterizing, or describing, a set of numbers; the measures used to characterize a set of data, e.g., average, maximum, coefficient of dispersion” is the definition of ____________ statistics.

A

descriptive

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32
Q

In the compound interest tables, which columns deal with present values?

A

Four, Five, Six

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33
Q

How much do I have to put aside each year, at 4.5% interest, to accumulate $25,000 to repave a parking lot in 7 years?

A

2983.29. [BEG] 7n, 4.5i, 25,000 CHS FV, PMT Answer is $2,983.29.

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34
Q

____________ are known as thrift institutions.

A

Savings & loans

35
Q

Analysis of central tendency is part of ____________ statistics.

A

descriptive

36
Q

You bought a house for $256,000 and sold it for $295,000, minus a 5% commission. What was the net percentage of your gain?

A

9.5. 295,000 Enter 95% Answer is $280,250. 256,000 ENTER 280,250 [delta]% Answer is 9.5%

37
Q

A 30-year mortgage has an interest rate of 5.9% and monthly payments of $1,156.62. What was the original mortgage amount?

A
  1. 30 gn, 5.9 gi, 1,156.72 CHS PMT, PV Answer is $195,000.
38
Q

“A representation describing an underlying logical structure, relationship, or behavior” is the definition of

A

model

39
Q

“In statistics, items of information used to draw conclusions about, or to describe, a population” is the definition of

A

data

40
Q

____________ loans are assumable without the permission of the lender.

A

FHA and VA

41
Q

Which are reasone why statistics are becoming more important for appraisers?

A

comparable sales data are becoming readily available through the internet. some appraisers perform mass appraisals. some clients are asking appraisers to participate in AVM’s.

42
Q

If I deposit $22,000 in a bank account at 2.75% interest, how much will I have at the end of 9 years?

A

28084.01. 9n, 2.75i, 22,000 CHS PV, FV Answer is 28,084.01

43
Q

An AVM by itself

A

is not an appraisal

44
Q

Mass appraisal is most often associated with _______________ valuation purposes.

A

real estate tax assessment

45
Q

“A symmetrical, bell-shaped curve that represents the distribution of a population of certain types of measurements or the frequency distribution of all possible means in large samples that may be drawn from an unknown population distribution” is the definition of

A

normal curve

46
Q

Which term is MOST similar to a common average?

A

mean

47
Q

An apartment owner needs to build up $30,000 to replace the boilers in 7 years. He decides to make semi-annual payments to an interest-bearing account paying 4.0%. How much are the semi-annual payments?

A

1841.23. [g] [BEG] 7 ENTER 2 X n, 4 ENTER 2 ÷ I, 30,000 CHS FV, PMT Answer is $1,841.23.

48
Q

A standard IQ test has a mean of _____ and a standard deviation of _____.

A

100, 10

49
Q

Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the median rent?

A
  1. First you must array them in order: 750, 750, 750, 775, 775, 800, 800, 800, 825, 850, 850, 850, 875, 875, 900. There are 15 numbers in the array. The formula to find the median is n + 1 ÷ 2. 15 + 1 ÷ 2 = 8.0. The median is the number that is 8th from either end. Count in from either end and the 8th number is 800. That’s the median.
50
Q

A condominium building HOA needs to build up $50,000 to replace its roof in 8 years. If they make quarterly payments to an account that produces 3.75% interest, how much are the quarterly payments?

A

1347.08. 8 ENTER 4 X n, 3.75 ENTER 4 ÷ I, 50,000 CHS FV, PMT Answer is $1,347.08

51
Q

Computer-assisted mass appraisals (CAMAs) were first adopted by _________________ in the ____________.

A

assessors, 1970s

52
Q

“The result of a sample selection process where all members of a population have the same probability of being selected” is the definition of _____________.

A

random sample

53
Q

In mass appraisal, a _____________ model calculates value based on physical characteristics.

A

hedonic

54
Q

The _______ describes the middle value in an ordered array of numerical values.

A

median

55
Q

How much do I have to put aside each year, at 6% interest, to accumulate $18,000 to replace a boiler in six years?

A

2434.46. 6n, 6i, 18,000 FV, CHS PMT Answer is $2,580.53

56
Q

The STANDARD or STANDARDS in USPAP that covers mass appraisals is STANDARD(s)

A

5 and 6

57
Q

_________ liens are liens placed on a property after a previous lien has been made and recorded.

A

Junior

58
Q

“The application of computer technology and statistical techniques to the solution of appraisal problems; used in assessment administration to derive value indications in the cost and sales comparison approaches and to perform other functions, e.g., assessment ratio analysis” is the definition of

A

computer-assisted mass appraisal

59
Q

In most cases, a mass appraisal model is some form of ____________ analysis.

A

multiple regression

60
Q

“The region or area over which something is found, is distributed, or occurs” is the definition of

A

range

61
Q

Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the modal rent?

A

$750, $800, and $850

62
Q

If a 20-year mortgage, with an interest rate of 6.15%, has monthly payments of $1,305.20; what was the original mortgage amount?

A
  1. 20 g n, 6.15 g i, 1,305.20 CHS PMT, PV Answer is $180,000.
63
Q

Another name for the student table is the _______ table.

A

t

64
Q

A $92,000 mortgage, with 7.2% interest, has a monthly payment of $695.32. How many years was the original term of the loan?

A

22

65
Q

Compounding and discounting are ___________.

A

opposites

66
Q

We have a $146,500 mortgage, for 25 years and the monthly payment is $989.28. What is the interest rate?

A

6.5%. 25 gn, 146,500 PV, 989.28 CHS PMT, i, 12 X Answer is 6.5%.

67
Q

The ________ is most affected by extreme values.

A

mean

68
Q

“A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate and estimate a single characteristic’s effect on value or rent” is the definition of

A

paired data analysis

69
Q

A property has a first mortgage of $130,000, a second mortgage of $30,000, and a third mortgage of $15,000. It is foreclosed and sold for $165,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

A

$5,000, $30,000

70
Q

If I put $9,000 in the bank at the beginning of every year for 6 years, at 4.5% interest – how much will I have at the end?

A

63172.37. [BEG] 6n, 4.5i, 9,000 CHS PMT FV Answer is $63,172.37.

71
Q

“A document or a clause in a document in which the borrower accepts responsibility for the repayment of a debt” is the definition of

A

mortgage note

72
Q

All of the following are tools of the Fed

A

open market operations, the discount rate, reserve requirements

73
Q

Your stock went from $125 to $97.25 in 3 years. What is the average percent change per year?

A

Minus 7.4%. 125 ENTER 97.25 ?% 3 ÷

74
Q

A property has a first mortgage of $180,000, a second mortgage of $40,000, and a third mortgage of $25,000. It is foreclosed and sold for $220,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

A

0, $40,000

75
Q

A(n) _______________ is “… a characteristic or attribute of an item, service, or individual that can change from observation to observation.”

A

variable

76
Q

A(n) __________________ is a model where an independent variable’s marginal contribution to the value of a dependent variable is constant over the entire range of the data.

A

linear model

77
Q

“A market created by government and private agencies for the purchase and sale of existing mortgages….” is the definition of the ___________ mortgage market.

A

secondary

78
Q

Here are 12 numbers. 41 56 38 61.5 49 59 32 67.5 60 52 47 44 What is the standard deviation?

A

10.66

79
Q

A property has a first mortgage of $150,000, a second mortgage of $30,000, and a third mortgage of $15,000. It is foreclosed and sold for $165,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

A

$0, $15,000

80
Q

R-squared (r2) measures how well the _________ fits the _________.

A

rgression line, data. R2 (the coefficient of determination) is used to measure how well the regression line fits the data provided.

81
Q

“Computer software that queries property and market data, analyzes comparable property and market information to assign a value or range to a particular property, or generates metrics applicable to assessing the credibility of valuation-related statements or conclusions” is the definition of

A

automated valuation model

82
Q

How much do I have to put aside each year, at 6% interest, to accumulate $14,000 to replace a boiler in 9 years?

A

1149.35

83
Q

“The standard deviation of a regression coefficient estimate” is the definition of

A

standard error

84
Q

What technique is used for analyzing the relationship between one dependent (outcome) variable and more than one (explanatory or predictor) variable?

A

multiple regression analysis

05 Statistics, Modeling and Finance (11 decks)

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