CFE Statistical Analysis & Mass Appraisal 1

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

The median assessment ratio is the primary measure of central tendency used in ratio studies to evaluate assessment level accuracy.

Question 2

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

Accepted Answer

The average absolute deviation from the median ratio

Answer

The COD measures the average absolute deviation of individual assessment ratios from the median ratio, indicating uniformity of assessments.

Question 3

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

Accepted Answer

10% or less

Answer

IAAO standards specify a COD of 10% or less for residential properties in typical, homogeneous markets to indicate acceptable uniformity.

Question 4

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

Accepted Answer

Vertical inequity between high- and low-value properties

Answer

The PRD identifies vertical inequity, revealing whether high-value or low-value properties are systematically over- or under-assessed relative to each other.

Question 5

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

Accepted Answer

Sale price or assessed value

Answer

In MRA for appraisal purposes, the dependent variable is the sale price or assessed value that the model is trying to predict.

CFE - Certified Florida Evaluator Practice Test

CFE - Certified Florida Evaluator Practice Test

CFE Statistical Analysis & Mass Appraisal 1