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

The Florida Department of Revenue publishes assessment guidelines and conducts ratio studies to review whether county property assessors meet statutory requirements.

Question 2

A stratified ratio study divides sales into groups based on:

Accepted Answer

Characteristics such as property type, value range, or location

Answer

Stratification divides properties into subgroups by characteristics such as property type, value range, or neighborhood to identify assessment inequities within each stratum.

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

Valid ratio studies require arms-length sales — transactions between unrelated, willing buyers and sellers with no undue influence — to accurately reflect market value.

Question 4

In mass appraisal, 'model calibration' refers to:

Accepted Answer

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

Answer

Model calibration is the process of statistically estimating or adjusting model coefficients so the model's predicted values closely match actual market sale prices.

Question 5

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

Accepted Answer

Quantify vertical inequity as a percentage of value

Answer

The PRB quantifies vertical inequity by measuring the percentage by which assessments change as property values change, expressed as a percentage of value.

CFE - Certified Florida Evaluator Practice Test

CFE - Certified Florida Evaluator Practice Test

CFE Statistical Analysis & Mass Appraisal 2