Statistical Analysis & Mass Appraisal Flashcards
7 cards from real CFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Statistical Analysis & Mass Appraisal flashcards as text
Which of the following best describes 'time trending' in a mass appraisal ratio study?
Answer: Adjusting sale prices to a common effective date to account for market changes over time
Time trending adjusts historical sale prices to a common effective appraisal date to remove the effect of market appreciation or decline between the sale date and the assessment date.
In Florida, the just value standard used for mass appraisal is most closely aligned with:
Answer: Market value as of January 1 of the tax year
Florida Statute requires that just value reflect the market value of property as of January 1 of each tax year before application of any assessment limitations.
An outlier sale in a ratio study is typically identified using:
Answer: A trimming or truncation method based on the interquartile range or standard deviations
Outliers are commonly identified and removed using statistical trimming based on the interquartile range or a specified number of standard deviations from the mean or median.
Which of the following is NOT a common mass appraisal valuation model type?
Answer: Feedback assessment model (FAM)
Feedback assessment model (FAM) is not a recognized mass appraisal valuation model; AEP, MRA, and comparable sales models are standard approaches used in mass appraisal.
The Weighted Mean ratio in a sales ratio study is calculated by:
Answer: Dividing the sum of all assessed values by the sum of all sale prices
The weighted mean ratio is the total assessed value of all sold properties divided by their total sale prices, giving greater weight to higher-priced properties.
In mass appraisal modeling, 'specification error' occurs when:
Answer: Important property characteristics are omitted from or incorrectly represented in the model
Specification error arises when the model omits key value-influencing variables or incorrectly represents relationships, leading to systematic prediction bias.
Florida's Department of Revenue uses ratio studies to determine whether a county property appraiser meets the statutory assessment standard. What minimum level of just value is generally required?
Answer: At least 90% of just value
Florida Statutes require counties to assess property at no less than 90% of just value, and the Department of Revenue uses ratio studies to verify compliance with this standard.