IAAO 300 EXAM REVIEW QUESTIONS
WITH COMPLETE SOLUTIONS GRADED
A+
_________ __________ should contain replacement cost tables, depreciation
schedules, guidelines for classifying structures, and building feature codes - Answer-
Cost manuals
Material, labor and supervision are - Answer-Direct Cost
_________ is the cost for constructing an identical structure - Answer-reproduction
Insurance, architectural, and engineering fees are examples of ____ costs. - Answer-
indirect
_____________________ is the cost of constructing new the existing building at today's
construction standards using today's materials. - Answer-Replacement cost
Depreciation schedules must reflect differences in building and construction types and
must be derived from the - Answer-market
Floors and roofing are examples of ____________ cost components. - Answer-
horizontal
When applying the comparative unit method, costs are expressed on a - Answer-Per
square foot basis
Proper application of the __________ ____________ method requires detailed
knowledge of construction - Answer-quantity survey
___________ ________ is the amount one expects to receive for his or her contribution
to a project that includes risk. - Answer-entrepreneurial incentive
Review COD Chart - Answer-
The three approaches to stratification and location analysis in mass appraisal are -
Answer-Geographical, cluster, global market with adjustments
_________ _________ __________ analyses can be very effective for homogenous
properties - Answer-Per unit value
, A statistical technique used for estimating unknown data based on known and available
data is - Answer-multiple regression analysis
The formula of the sales comparison model is - Answer-MV= Sc + ADJc
The three basic types of mass appraisal model structures are - Answer-Additive,
Multiplicative, and hybrid
MV=b0+(b1*x1) + (b2*x2) is known as the - Answer-Additive model
When geographically stratifying properties, —- should be drawn to correspond with ——
—— or political boundaries - Answer-Boundaries, physical
Broad geographic areas subject to the same economic influences are known as -
Answer-Market areas
A technique that can be used to group similar subdivisions into neighborhoods -
Answer-Cluster analysis
MV=gq x [(pi*q1)] + [(p1*ql)] - Answer-Hybrid (generic) model
The trial and error process for quantifying the relationship between dependent (sale
price) and independent variables (property characteristics) is the - Answer-Adaptive
estimation procedure
In the development of per unit value, the most appropriate would have low measures of
- Answer-Dispersion
The formula for the net income model - Answer-Value=i/r
When estimating gross income, you must ——- properties by class, etc, computer
measures of central tendency land dispersion and determine the typical per unit value. -
Answer-Stratify
Properties taxes should not be included when estimating - Answer-Expense ratios
List 3 factors that should be considered when stratifying properties or specifying models
for the development of GIMs and OARs. - Answer-Location, type, age or condition
The dependent variable in gross income models is - Answer-gross income per unit
Independent variables in gross income models should be ——— ———— that are in
important in explaining differences in gross income - Answer-Property characteristics
The dependent variable in expense ratio models should be the - Answer-overall
expense ratio
WITH COMPLETE SOLUTIONS GRADED
A+
_________ __________ should contain replacement cost tables, depreciation
schedules, guidelines for classifying structures, and building feature codes - Answer-
Cost manuals
Material, labor and supervision are - Answer-Direct Cost
_________ is the cost for constructing an identical structure - Answer-reproduction
Insurance, architectural, and engineering fees are examples of ____ costs. - Answer-
indirect
_____________________ is the cost of constructing new the existing building at today's
construction standards using today's materials. - Answer-Replacement cost
Depreciation schedules must reflect differences in building and construction types and
must be derived from the - Answer-market
Floors and roofing are examples of ____________ cost components. - Answer-
horizontal
When applying the comparative unit method, costs are expressed on a - Answer-Per
square foot basis
Proper application of the __________ ____________ method requires detailed
knowledge of construction - Answer-quantity survey
___________ ________ is the amount one expects to receive for his or her contribution
to a project that includes risk. - Answer-entrepreneurial incentive
Review COD Chart - Answer-
The three approaches to stratification and location analysis in mass appraisal are -
Answer-Geographical, cluster, global market with adjustments
_________ _________ __________ analyses can be very effective for homogenous
properties - Answer-Per unit value
, A statistical technique used for estimating unknown data based on known and available
data is - Answer-multiple regression analysis
The formula of the sales comparison model is - Answer-MV= Sc + ADJc
The three basic types of mass appraisal model structures are - Answer-Additive,
Multiplicative, and hybrid
MV=b0+(b1*x1) + (b2*x2) is known as the - Answer-Additive model
When geographically stratifying properties, —- should be drawn to correspond with ——
—— or political boundaries - Answer-Boundaries, physical
Broad geographic areas subject to the same economic influences are known as -
Answer-Market areas
A technique that can be used to group similar subdivisions into neighborhoods -
Answer-Cluster analysis
MV=gq x [(pi*q1)] + [(p1*ql)] - Answer-Hybrid (generic) model
The trial and error process for quantifying the relationship between dependent (sale
price) and independent variables (property characteristics) is the - Answer-Adaptive
estimation procedure
In the development of per unit value, the most appropriate would have low measures of
- Answer-Dispersion
The formula for the net income model - Answer-Value=i/r
When estimating gross income, you must ——- properties by class, etc, computer
measures of central tendency land dispersion and determine the typical per unit value. -
Answer-Stratify
Properties taxes should not be included when estimating - Answer-Expense ratios
List 3 factors that should be considered when stratifying properties or specifying models
for the development of GIMs and OARs. - Answer-Location, type, age or condition
The dependent variable in gross income models is - Answer-gross income per unit
Independent variables in gross income models should be ——— ———— that are in
important in explaining differences in gross income - Answer-Property characteristics
The dependent variable in expense ratio models should be the - Answer-overall
expense ratio
