IAAO 300: COMPLETE COURSE
REVIEW QUESTIONS AND
ANSWERS
What is the best way to display the distribution of continuous and discrete variables? -
Answer-Box Plot
What expresses the Standard Deviation as a percentage? - Answer-Coefficient of
Variation or C.O.V.
What type of sales are preferred in sales ratio studies? - Answer-Single Parcel sales
When confirming sales to be used, adjustments may need to be made. What is a typical
adjustment? - Answer-Time Adjustment/Market Adjustment
Which data analysis tool is helpful to identify outliers and extreme outliers? - Answer-
Box plots
Given the data set below, find the Median, COD, and PRD.
Sale Price: $125,000, 110,000, 120,000, 130,000, 125,000
Appraised Value: $130,000, 98,000, 115,000, 124,000, 119,000. - Answer-Median =
0.95; C.O.D. = 3.37%; P.R.D. = 1.00
To evaluate vertical equity (PRD) graphically, what else is needed besides sales ratios?
- Answer-Values; Sales Prices/Appraised Value
What is the current RCN given the following information?
Original Cost: $260,000
Square Feet: 6,000
Index at time of construction: 180
Current Index: 220 - Answer-RCN = $260,000 x 1.22 = $317,200
Where can cost tables and schedules be obtained from? - Answer-Marshall & Swift,
state agencies, in-house
What is the most common costing method? - Answer-Comparative Unit per Square Foot
Price Related Differential is a measure of what? What is the acceptable range? PRD
greater than 1 means what? PRD less than 1 means what? - Answer-1. vertical equity
2. 0.98 to 1.03
3. Regressive
, 4. Progressive
Overhead and profit are examples of what type of cost? - Answer-In-direct costs
What is the most detailed cost estimation method? - Answer-Quantity Survey
Cost models are what type of model? - Answer-Hybrid(Generic) Cost Model
Trending using medians would be done by dividing the target median by the actual
median. True or False - Answer-True
The IAAO acceptable median range is what? - Answer-0.90 to 1.10
Find the 40th percentile for the following data set:
$80,000
82,600
84,000
87,100
90,000
96,000 - Answer-$83,720
What is the current cost given the following? Round to 2 decimal places.
Original Cost $160,000
Index at construction 1.4
Current Index 1.7 - Answer-$193, 600
What type of model is the following:
MV = B0 x SQFTB1 x QUALB2 x ?B3 - Answer-Multiplicative model
What type of analysis combines subdivisions into Market Areas? - Answer-Cluster
analysis
What is not a strength of Multiple Regression Analysis? - Answer-No separate land or
building value
What modeling process adjusts to information gained as sales are sequentially
considered and reconsidered? - Answer-Feedback or AEP
What is the main advantage of the automated sales algorithm? - Answer-User
determines variables to be considered
What is the main difference between single property appraisal and mass appraisal? -
Answer-1. Group vs Particular 2. Mass Appraisal emphasizes standardized and
statistical quality control features
REVIEW QUESTIONS AND
ANSWERS
What is the best way to display the distribution of continuous and discrete variables? -
Answer-Box Plot
What expresses the Standard Deviation as a percentage? - Answer-Coefficient of
Variation or C.O.V.
What type of sales are preferred in sales ratio studies? - Answer-Single Parcel sales
When confirming sales to be used, adjustments may need to be made. What is a typical
adjustment? - Answer-Time Adjustment/Market Adjustment
Which data analysis tool is helpful to identify outliers and extreme outliers? - Answer-
Box plots
Given the data set below, find the Median, COD, and PRD.
Sale Price: $125,000, 110,000, 120,000, 130,000, 125,000
Appraised Value: $130,000, 98,000, 115,000, 124,000, 119,000. - Answer-Median =
0.95; C.O.D. = 3.37%; P.R.D. = 1.00
To evaluate vertical equity (PRD) graphically, what else is needed besides sales ratios?
- Answer-Values; Sales Prices/Appraised Value
What is the current RCN given the following information?
Original Cost: $260,000
Square Feet: 6,000
Index at time of construction: 180
Current Index: 220 - Answer-RCN = $260,000 x 1.22 = $317,200
Where can cost tables and schedules be obtained from? - Answer-Marshall & Swift,
state agencies, in-house
What is the most common costing method? - Answer-Comparative Unit per Square Foot
Price Related Differential is a measure of what? What is the acceptable range? PRD
greater than 1 means what? PRD less than 1 means what? - Answer-1. vertical equity
2. 0.98 to 1.03
3. Regressive
, 4. Progressive
Overhead and profit are examples of what type of cost? - Answer-In-direct costs
What is the most detailed cost estimation method? - Answer-Quantity Survey
Cost models are what type of model? - Answer-Hybrid(Generic) Cost Model
Trending using medians would be done by dividing the target median by the actual
median. True or False - Answer-True
The IAAO acceptable median range is what? - Answer-0.90 to 1.10
Find the 40th percentile for the following data set:
$80,000
82,600
84,000
87,100
90,000
96,000 - Answer-$83,720
What is the current cost given the following? Round to 2 decimal places.
Original Cost $160,000
Index at construction 1.4
Current Index 1.7 - Answer-$193, 600
What type of model is the following:
MV = B0 x SQFTB1 x QUALB2 x ?B3 - Answer-Multiplicative model
What type of analysis combines subdivisions into Market Areas? - Answer-Cluster
analysis
What is not a strength of Multiple Regression Analysis? - Answer-No separate land or
building value
What modeling process adjusts to information gained as sales are sequentially
considered and reconsidered? - Answer-Feedback or AEP
What is the main advantage of the automated sales algorithm? - Answer-User
determines variables to be considered
What is the main difference between single property appraisal and mass appraisal? -
Answer-1. Group vs Particular 2. Mass Appraisal emphasizes standardized and
statistical quality control features
