CFE Statistical Analysis & Mass Appraisal 2

Question 1

In Florida's mass appraisal system, which entity publishes guidelines and reviews the accuracy of county property assessments?

Accepted Answer

Florida Department of Revenue

Answer

Florida Board of Accountancy

Answer

Florida Real Estate Commission

Answer

Florida Department of Business and Professional Regulation

Question 2

A stratified ratio study divides sales into groups based on:

Accepted Answer

Characteristics such as property type, value range, or location

Answer

Property age only

Answer

The date of sale

Answer

The appraiser who conducted the assessment

Question 3

Which of the following is a key requirement for a sale to be included in a valid ratio study?

Accepted Answer

The sale must be an arms-length transaction between unrelated parties

Answer

The sale must be recorded within the same calendar year as the assessment

Answer

The seller must be a financial institution

Answer

The buyer must occupy the property as a primary residence

Question 4

In mass appraisal, 'model calibration' refers to:

Accepted Answer

Estimating the coefficients or adjustments that produce the most accurate value predictions

Answer

Adjusting the appraisal date to match the sale date

Answer

Calibrating physical measurement instruments used on inspections

Answer

Setting the depreciation schedule for all improvement types

Question 5

The 'Price-Related Bias' (PRB) statistic is used to:

Accepted Answer

Quantify vertical inequity as a percentage of value

Answer

Measure the geographic bias in assessment ratios

Answer

Calculate seasonal price adjustments in the market

Answer

Identify time-trend corrections needed for older sales

Question 6

In mass appraisal, 'base year value' refers to:

Accepted Answer

The value established in the first year of a reassessment cycle

Answer

The value assigned when a property first enters the assessment roll

Answer

The inflation-adjusted replacement cost of improvements

Answer

The last sale price recorded in the property's history

Question 7

When a mass appraisal model produces an R-squared (R²) value of 0.90, this indicates:

Accepted Answer

90% of the variation in sale prices is explained by the model's variables

Answer

The model has a 10% error rate

Answer

The assessments are within 10% of the median ratio

Answer

The COD is 90