CAE Industry Best Practices 5

Question 1

What is the IAAO-recommended PRD range?

Accepted Answer

0.98 to 1.03

Answer

IAAO considers a PRD between 0.98 and 1.03 acceptable for vertical equity.

Question 2

A PRD of 0.95 most likely indicates which condition?

Accepted Answer

Progressivity, where high-value properties are over-assessed relative to low-value properties

Answer

A PRD below 0.98 suggests progressivity, with higher-value properties assessed at relatively higher ratios.

Question 3

Which professional standard governs the ethics and conduct of appraisers, including mass appraisal reporting under Standard 6?

Accepted Answer

USPAP

Answer

The Uniform Standards of Professional Appraisal Practice include Standards 5 and 6 for mass appraisal.

Question 4

Which IAAO best practice applies to the use of automated valuation models (AVMs) in assessment?

Accepted Answer

AVMs should be calibrated, tested with ratio statistics, and documented

Answer

The IAAO Standard on Automated Valuation Models requires calibration, testing, and documentation of model performance.

Question 5

Which best practice helps an assessment office maintain public trust?

Accepted Answer

Clear communication of assessment procedures, values, and appeal rights

Answer

IAAO's Standard on Public Relations stresses transparency and clear explanation of the assessment process.

CAE - Certified Assessment Evaluator Practice Test