SAEE Mass Appraisal Techniques 4

Question 1

Which statistical measure is used in mass appraisal to indicate the uniformity of appraisal ratios within a property class?

Accepted Answer

Coefficient of Dispersion (COD)

Answer

The Coefficient of Dispersion (COD) measures the average deviation of appraisal ratios from the median ratio, indicating uniformity.

Question 2

In mass appraisal, a Price-Related Differential (PRD) greater than 1.03 generally indicates:

Accepted Answer

Regressivity, where higher-value properties are under-appraised relative to lower-value properties

Answer

A PRD above 1.03 indicates regressivity, meaning higher-value properties tend to have lower assessment ratios than lower-value properties.

Question 3

Which type of multiple regression analysis is most commonly used when the relationship between property value and its characteristics is multiplicative rather than additive?

Accepted Answer

Log-linear (semi-log) regression

Answer

Log-linear regression is used when variables have a multiplicative relationship, as taking the logarithm transforms this into an additive (linear) model.

Question 4

In a Computer-Assisted Mass Appraisal (CAMA) system, what is the primary function of a 'neighborhood delineation'?

Accepted Answer

Grouping properties that share similar market influences to improve model accuracy

Answer

Neighborhood delineation groups properties with similar locational and market influences so appraisal models can reflect those shared characteristics accurately.

Question 5

An assessor is comparing two mass appraisal models. Model A has a COD of 12 and Model B has a COD of 18. Which model demonstrates better appraisal uniformity?

Accepted Answer

Model A, because a lower COD indicates tighter clustering of ratios around the median

Answer

A lower COD indicates less variation in appraisal ratios, meaning Model A produces more uniform assessments.

SAEE Test Practice Test

SAEE Test Practice Test

SAEE Mass Appraisal Techniques 4