Modeling and Finance Statistics Study Guide - High-Score Study Material

Modeling and Finance Statistics Study Guide - High-Score Study Material In statistics, items of information used to draw conclusions about, or to describe, a population. For example, housing data might include the following for each house in the data set: improved living area, number of bedrooms, lot size, and type of roofing material. - answer - sample RO = M x RM + [(1 - M) x RE] - answer - Overall capitalization rate In developing a real property appraisal, an appraiser must: (a) be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal1 - answer - Standards Rule 1-1(a) in USPAP says: (noun) the act or process of developing an opinion of value; an opinion of value. (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services - answer - The definition of appraisal from The Appraisal of Real Estate, Sixth Edition is: 1. a view, judgment, or appraisal formed in the mind about a particular matter. (Note: It's interesting that the word "appraisal" is used in part of the definition.) 2 a: a belief stronger than impression and less strong than positive knowledge. b: a generally held view. - answer - The Merriam-Webster Online Dictionary further defines "opinion" as: A branch of statistics concerned only with characterizing, or describing, a set of numbers. The measures used to characterize a set of data (e.g., average, maximum, coefficient of dispersion) or charts and tables depicting the data. Descriptive statistics just deals with the present. - answer - Descriptive statistics is defined as: The process of drawing conclusions about population characteristics through analysis of sample data. - answer - Inferential statistics is defined as: A chart or visual representation of data relying on references to two axes, which may be either numerical or categorical in scale. For example, a scatter plot is a graph referencing two numerically scaled axes, whereas a bar chart is a graph referencing one numerical axis and one categorical axis. - answer - A graph is defined as: In statistics, a characteristic or attribute of an item, service, or individual that can change from observation to observation. For example, improved living area is a characteristic of a house that can change with each observation. - answer - A variable is defined as: The variable being estimated (outcome or response variable) in a predictive model such as a multiple linear regression equation. - answer - A dependent variable is defined as: A series of related changes brought about by a chain of causes and effects. Trends are forecast through economic base analysis, statistical analysis, market analysis, and analysis of economic indicators and surveys. - answer - Trend is defined as: 3 ENTER 4 X 5 ENTER 6 X + 16.5 ÷ 2.55 - answer - (3 x 4) + (5 x 6) ÷ 16.5 This key is very helpful. You key it in the way you would say it - 5%. You don't need to convert to decimals and maybe get the decimal point in the wrong place. Find 5% of 22,365. You don't have to multiply by .05; just key in the number and the percent. 22365 ENTER 5% The answer that appears in your display is 1,118.25 - answer - Simple Percent 212750 ENT 5.5% - 201,048.75 - answer - A homeowner sells his house for $212,750. The sales commission is 5.5%. What is the net amount received by the owner? 32 ENT 47.25 % 47.66 3 ÷ 15.89 - answer - Your stock went from $32 to $47.25 in three years. What is the percent change? What is the average change per year? 145000 ENT 129900 ENT 6 % - triangle -15.79 - answer - You bought a house for $145,000 and sold it for $129,900, minus a 6% commission. What percent did you lose? 24 ENT 38 + 34 + 24 %T 25.0 CLX 38 %T 39.6 CLX 34 %T 35.4 - answer - In your office, for January and February, Joe appraised 24 houses, Sue appraised 38 and you appraised 34. What percent did each appraise? $3,212.78 - answer - At the end of last mont