CFE Statistical Analysis & Mass Appraisal

Question 1

In mass appraisal, which statistical measure is used to indicate the central tendency of a ratio study?

Accepted Answer

Median assessment ratio

Answer

Standard deviation

Answer

Coefficient of variation

Answer

Price-related differential

Question 2

The Coefficient of Dispersion (COD) in a ratio study measures:

Accepted Answer

The average absolute deviation from the median ratio

Answer

The bias between high-value and low-value properties

Answer

The correlation between sale price and assessed value

Answer

The percentage of properties within 10% of the median

Question 3

According to IAAO standards, an acceptable COD for residential properties in a typical market is:

Accepted Answer

10% or less

Answer

5% or less

Answer

15% or less

Answer

20% or less

Question 4

The Price-Related Differential (PRD) is used primarily to detect:

Accepted Answer

Vertical inequity between high- and low-value properties

Answer

Seasonal trends in the market

Answer

The accuracy of cost data in the cost approach

Answer

Geographic clustering of sales ratios

Question 5

In multiple regression analysis (MRA) used for mass appraisal, the dependent variable is typically:

Accepted Answer

Sale price or assessed value

Answer

Square footage of living area

Answer

Year of construction

Answer

Neighborhood code

Question 6

A sales ratio study compares:

Accepted Answer

Assessed values to market sale prices

Answer

Assessed values to appraised values

Answer

Land values to improvement values

Answer

Current assessments to prior year assessments

Question 7

Which type of regression model assumes that the relationship between property characteristics and value is multiplicative rather than additive?

Accepted Answer

Nonlinear or log-linear model

Answer

Linear regression model

Answer

Additive regression model

Answer

Stepwise regression model