Free CAE Mass Appraisal and Statistical Analysis Questions and Answers

Question 1

What is the primary purpose of mass appraisal in property assessment?

Accepted Answer

To automate and standardize property valuations

Answer

To appraise only high-value homes

Answer

To manually assess each property individually

Answer

To enforce building codes

Question 2

Which statistical measure is most commonly used to determine the accuracy of a mass appraisal model?

Accepted Answer

Coefficient of dispersion (COD)

Answer

Mean absolute deviation

Answer

Median sale price

Answer

Standard score

Question 3

Which variable is typically considered in a mass appraisal regression model?

Accepted Answer

Living area in square feet

Answer

Homeowner’s income

Answer

Property owner's age

Answer

Number of pets

Question 4

In mass appraisal, what is the significance of stratification?

Accepted Answer

To group similar properties for analysis

Answer

To simplify zoning codes

Answer

To reduce tax rates

Answer

To prioritize commercial assessments

Question 5

What is the purpose of calibration in a mass appraisal model?

Accepted Answer

To adjust the model to reflect market data

Answer

To reduce the number of comparable sales

Answer

To set tax rates

Answer

To remove non-compliant properties

Question 6

Which of the following best defines 'model specification' in mass appraisal?

Accepted Answer

Defining variables and equations used in the model

Answer

Number of appraisers on staff

Answer

Amount of taxes owed

Answer

Determining property ownership