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1. Which of the following best defines mass appraisal?
A) The appraisal of a single high-value property using all three approaches
B) The process of valuing a group of properties as of a given date using common
data and standardized procedures
C) The review of individual appraisals for mortgage lending purposes
D) The valuation of properties solely based on replacement cost
Correct Answer: B
Rationale: Mass appraisal is specifically defined as valuing a universe of properties
as of a given date using standardized procedures and statistical testing,
distinguishing it from single-property appraisal.
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2. What is the fundamental difference between single-property appraisal and
mass appraisal?
A) Mass appraisal uses only the cost approach
,B) Single-property appraisal relies on more data points
C) Mass appraisal emphasizes uniform procedures and statistical tests for
valuation equity
D) Single-property appraisal does not require market analysis
Correct Answer: C
Rationale: Mass appraisal relies on standardized, systematic procedures and
statistical tests (like ratio studies) to ensure equitable valuations across many
properties, while single-property appraisal is individualized.
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3. In mass appraisal, what is the primary purpose of a ratio study?
A) To determine the highest and best use of a property
B) To estimate the cost of constructing a new building
C) To measure the level, uniformity, and equity of property assessments
D) To calculate the net operating income of a commercial property
Correct Answer: C
Rationale: Ratio studies compare assessed values to market indicators (e.g., sale
prices) to evaluate assessment performance, specifically level (central tendency)
and uniformity (vertical equity).
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4. Which statistical measure is most commonly used in IAAO standards to indicate
the central tendency or level of assessments?
,A) Mean
B) Median
C) Mode
D) Standard deviation
Correct Answer: B
Rationale: The IAAO recommends the median (specifically the median assessment
ratio) as the primary measure of assessment level because it is less influenced by
extreme outliers than the mean.
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5. The Coefficient of Dispersion (COD) measures what aspect of an assessment
roll?
A) The average assessment level
B) The horizontal equity or uniformity of assessments around the median
C) The vertical equity for high-value properties
D) The age-life condition of improvements
Correct Answer: B
Rationale: The COD measures the average percentage deviation of assessment
ratios from the median, quantifying horizontal equity (uniformity) across all
properties in a class.
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, 6. A COD of 25% for residential properties in a large jurisdiction would be
considered:
A) Excellent
B) Good
C) Fair
D) Poor/Unacceptable
Correct Answer: D
Rationale: IAAO standards recommend a COD of 10% or less for newer residential
properties and 15% or less for older/urban residential. A COD of 25% indicates
unacceptable non-uniformity.
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7. What does the Price-Related Differential (PRD) measure?
A) The age of the property
B) Vertical equity – whether high-value properties are over-assessed relative to
low-value ones
C) The physical depreciation of the structure
D) The vacancy rate in a commercial district
Correct Answer: B
Rationale: The PRD is the mean ratio divided by the weighted mean ratio. A PRD
above 1.03 suggests regressivity (high-value properties under-assessed), while
below 0.98 suggests progressivity.
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