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
In Florida's mass appraisal system, which entity publishes guidelines and reviews the accuracy of county property assessments?
Answer: Florida Department of Revenue
The Florida Department of Revenue publishes assessment guidelines and conducts ratio studies to review whether county property assessors meet statutory requirements.
A stratified ratio study divides sales into groups based on:
Answer: Characteristics such as property type, value range, or location
Stratification divides properties into subgroups by characteristics such as property type, value range, or neighborhood to identify assessment inequities within each stratum.
Which of the following is a key requirement for a sale to be included in a valid ratio study?
Answer: The sale must be an arms-length transaction between unrelated parties
Valid ratio studies require arms-length sales — transactions between unrelated, willing buyers and sellers with no undue influence — to accurately reflect market value.
In mass appraisal, 'model calibration' refers to:
Answer: Estimating the coefficients or adjustments that produce the most accurate value predictions
Model calibration is the process of statistically estimating or adjusting model coefficients so the model's predicted values closely match actual market sale prices.
The 'Price-Related Bias' (PRB) statistic is used to:
Answer: Quantify vertical inequity as a percentage of value
The PRB quantifies vertical inequity by measuring the percentage by which assessments change as property values change, expressed as a percentage of value.
In mass appraisal, 'base year value' refers to:
Answer: The value established in the first year of a reassessment cycle
The base year value is the market value established for a property during a reappraisal, serving as the foundation for future assessments within an assessment cycle.
When a mass appraisal model produces an R-squared (R²) value of 0.90, this indicates:
Answer: 90% of the variation in sale prices is explained by the model's variables
An R² of 0.90 means the model's independent variables explain 90% of the variance in sale prices, indicating a strong predictive relationship.