IAAO 300 FINAL EXAM 2026 UPDATED QUESTIONS AND
SOLUTIONS RATED A+
✔✔Scatter diagrams: - ✔✔The dependent variable is shown on the vertical axis, the
independent variable is shown on the horizontal axis.
✔✔Quartiles - ✔✔Divide a set of data into four equal parts when the data are arrayed in
ascending order. The first quartile is the value below which the lowest quarter of the
data fall, the second quartile is the median, the third quartile is the value below which
75% of the data fall, etc.
✔✔Percentiles - ✔✔Values that divide a set of data into specified percentages when
data is arrayed in ascending order. The 10th percentile is the value of the observation
below which the lowest 10% of the data fall, the 20th percentile is the value below which
the lowest 20% of the data fall etc.
✔✔The rank of the observations corresponding to a specific quartile or percentile can
be found by this formula: - ✔✔K = (p)(n) + p
Where:
K = rank
p = chosen quartile or percentile in decimal form
n = sample size
✔✔Purpose of ratio studies - ✔✔Test level of appraisal, test uniformity or equity of
appraisals, determine reappraisal priorities, develop market adjustment (trend) factors,
planning and budgeting, etc...
✔✔Trend factor formula: - ✔✔Target ratio divided by current ratio.
✔✔Frequency distributions: - ✔✔Five or more 15 or less.
✔✔Histograms (Bar charts): - ✔✔Can be used to show frequency distribution
✔✔Scatter diagrams: - ✔✔Show the dependent variable on the vertical axis and
independent variable on the horizontal axis.
✔✔Negative correlation: - ✔✔downward slope on scatter diagram.
✔✔Positive correlation: - ✔✔Upward slope on scatter diagram.
✔✔Coefficient of dispersion: - ✔✔Most common measure of appraisal uniformity.
, ✔✔Horizontal equity: - ✔✔Relates to equity among neighborhoods, size groups, age
groups in soon.
Is evaluated by comparing measures of central tendency for each group or strata.
✔✔Vertical equity: - ✔✔Relates to equity in the appraisal of low-value in high-value
parcels.
The price related differential (PRD) is a rough measure a vertical equity.
✔✔Level of appraisal: - ✔✔Should be between 90 and 1.10.
✔✔Uniformity of appraisals: - ✔✔Among strata; appraisal levels for individual strata
should be within 5% of the overall level.
✔✔Measures of central tendency: - ✔✔Mean, median and weighted mean.
✔✔Cost of models follow the structure of: - ✔✔Generic (hybrid) models.
✔✔Construction costs: - ✔✔Supply side of the market.
✔✔General qualitative adjustments, land prices and depreciation should be derived
from: - ✔✔Demand side of the market.
✔✔Direct costs: - ✔✔Materials, labor and supervision. (On site)
✔✔Indirect costs: - ✔✔Architectural and engineering fees, building permits, insurance,
interest, taxes incurred during construction, marketing, overhead and profit. (Off site)
✔✔Cost table sources: - ✔✔Commercial cost services (marshall swift), mass appraisal
companies, state agencies and in-house (based on local costs).
✔✔Methods of estimating cost: - ✔✔Quantity survey method, unit in place method,
comparative unit method and trended original cost method.
✔✔Quantity survey method: - ✔✔Most detailed method of estimating cost; tends to
produce reproduction costs.
✔✔Units in place method: - ✔✔Involves estimating the cost of each major building
component on a per unit basis. Horizontal cost components(per sq. ft. basis), vertical
cost components (per linear ft. basis) and lump sum items(handled separately).
✔✔Comparative unit method: - ✔✔One base rate is developed for each building class;
all costs are expressed on a per square foot basis.
SOLUTIONS RATED A+
✔✔Scatter diagrams: - ✔✔The dependent variable is shown on the vertical axis, the
independent variable is shown on the horizontal axis.
✔✔Quartiles - ✔✔Divide a set of data into four equal parts when the data are arrayed in
ascending order. The first quartile is the value below which the lowest quarter of the
data fall, the second quartile is the median, the third quartile is the value below which
75% of the data fall, etc.
✔✔Percentiles - ✔✔Values that divide a set of data into specified percentages when
data is arrayed in ascending order. The 10th percentile is the value of the observation
below which the lowest 10% of the data fall, the 20th percentile is the value below which
the lowest 20% of the data fall etc.
✔✔The rank of the observations corresponding to a specific quartile or percentile can
be found by this formula: - ✔✔K = (p)(n) + p
Where:
K = rank
p = chosen quartile or percentile in decimal form
n = sample size
✔✔Purpose of ratio studies - ✔✔Test level of appraisal, test uniformity or equity of
appraisals, determine reappraisal priorities, develop market adjustment (trend) factors,
planning and budgeting, etc...
✔✔Trend factor formula: - ✔✔Target ratio divided by current ratio.
✔✔Frequency distributions: - ✔✔Five or more 15 or less.
✔✔Histograms (Bar charts): - ✔✔Can be used to show frequency distribution
✔✔Scatter diagrams: - ✔✔Show the dependent variable on the vertical axis and
independent variable on the horizontal axis.
✔✔Negative correlation: - ✔✔downward slope on scatter diagram.
✔✔Positive correlation: - ✔✔Upward slope on scatter diagram.
✔✔Coefficient of dispersion: - ✔✔Most common measure of appraisal uniformity.
, ✔✔Horizontal equity: - ✔✔Relates to equity among neighborhoods, size groups, age
groups in soon.
Is evaluated by comparing measures of central tendency for each group or strata.
✔✔Vertical equity: - ✔✔Relates to equity in the appraisal of low-value in high-value
parcels.
The price related differential (PRD) is a rough measure a vertical equity.
✔✔Level of appraisal: - ✔✔Should be between 90 and 1.10.
✔✔Uniformity of appraisals: - ✔✔Among strata; appraisal levels for individual strata
should be within 5% of the overall level.
✔✔Measures of central tendency: - ✔✔Mean, median and weighted mean.
✔✔Cost of models follow the structure of: - ✔✔Generic (hybrid) models.
✔✔Construction costs: - ✔✔Supply side of the market.
✔✔General qualitative adjustments, land prices and depreciation should be derived
from: - ✔✔Demand side of the market.
✔✔Direct costs: - ✔✔Materials, labor and supervision. (On site)
✔✔Indirect costs: - ✔✔Architectural and engineering fees, building permits, insurance,
interest, taxes incurred during construction, marketing, overhead and profit. (Off site)
✔✔Cost table sources: - ✔✔Commercial cost services (marshall swift), mass appraisal
companies, state agencies and in-house (based on local costs).
✔✔Methods of estimating cost: - ✔✔Quantity survey method, unit in place method,
comparative unit method and trended original cost method.
✔✔Quantity survey method: - ✔✔Most detailed method of estimating cost; tends to
produce reproduction costs.
✔✔Units in place method: - ✔✔Involves estimating the cost of each major building
component on a per unit basis. Horizontal cost components(per sq. ft. basis), vertical
cost components (per linear ft. basis) and lump sum items(handled separately).
✔✔Comparative unit method: - ✔✔One base rate is developed for each building class;
all costs are expressed on a per square foot basis.
