CFE Statistical Analysis & Mass Appraisal 3

Question 1

Which of the following best describes 'time trending' in a mass appraisal ratio study?

Accepted Answer

Adjusting sale prices to a common effective date to account for market changes over time

Answer

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.

Question 2

In Florida, the just value standard used for mass appraisal is most closely aligned with:

Accepted Answer

Market value as of January 1 of the tax year

Answer

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.

Question 3

An outlier sale in a ratio study is typically identified using:

Accepted Answer

A trimming or truncation method based on the interquartile range or standard deviations

Answer

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.

Question 4

Which of the following is NOT a common mass appraisal valuation model type?

Accepted Answer

Feedback assessment model (FAM)

Answer

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.

Question 5

The Weighted Mean ratio in a sales ratio study is calculated by:

Accepted Answer

Dividing the sum of all assessed values by the sum of all sale prices

Answer

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.

CFE - Certified Florida Evaluator Practice Test

CFE - Certified Florida Evaluator Practice Test

CFE Statistical Analysis & Mass Appraisal 3