Chapter 2 - Appraisal Math and Statistics

Question 1

A property has an assessed value of $45,000. If the assessment is 36% of the market value, what is the market value?

Answer 1

45,000/.36 = 125,000

Question 2

A property valued at $200,000 produces a net operating income of $24,000 per year. What percentage of value (rate) does this property earn?

Answer 2

24,000/200,000 = .12

12%

Question 3

The average of all variates is

a. the mean
b. the mode
c. the median
d. the range

Answer 3

a. the mean

Question 4

The center of all variates is

a. the mean
b. the mode
c. the median
d. the range

Answer 4

c. the median

Question 5

the difference between the highest and lowest variates is

a. the mean
b. the mode
c. the median
d. the range

Answer 5

d. the range

Question 6

Five houses are sold at the following sales prices: $100,000, $75,000, $175,000, $200,000, and $150,000

The mean of house sales prices is

a. $140,000
b. $150,000
c. $700,000
d. $175,000

Answer 6

a. $140,000

Question 7

Five houses are sold at the following sales prices: $100,000, $75,000, $175,000, $200,000, and $150,000

The median of house sales prices is

a. $140,000
b. $150,000
c. $700,000
d. $175,000

Answer 7

b. $150,000

Question 8

Five houses are sold at the following sales prices: $100,000, $75,000, $175,000, $200,000, and $150,000

The aggregate of house sales prices is

a. $140,000
b. $150,000
c. $700,000
d. $175,000

Answer 8

d. $175,000

Question 9

The factor used to convert square feet to square yards is

a. 3
b. 9
c. 18
d. 27

Answer 9

b. 9

Question 10

The factor used to convert cubic feet to cubic yards is

a. 3
b. 9
c. 18
d. 27

Answer 10

d. 27

Question 11

In a positively skewed distribution, the mean will be

a. less than the mode.
b. less than the median
c. greater than the median
d. the same as the mode

Answer 11

c. greater than the median

Question 12

In a negatively skewed distribution, the mode will be

a. greater than the mean.
b. less than the median
c. less than the mean
d. the same as the mode

Answer 12

a. greater than the mean

Question 13

Extreme values in a data set are referred to as

a. measure of variability
b. outliers
c. weighted averages
d. deviations

Answer 13

b. outliers

Question 14

The mean, median, and mode are all equal

a. if the data is negatively skewed
b. in a bimodal distribution
c. if the data is positively skewed
d. if the data follows a normal distribution

Answer 14

d. if the data follows a normal distribution