IAAO 300 EXAM QUESTIONS WITH
100% CORRECT ANSWERS
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
A technique that can be used to group similar subdivisions into neighborhoods -
Answer- cluster analysis
MV = GQ x [(Pi X Qi) + (Pl x Ql) + OA is known as the_________ model - Answer-
hybrid (generic)
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 values, the most appropriate units would have low
measures of _________ - Answer- dispersion
The formula for net income model is _________ - Answer- MV= NOI / OAR
When estimating gross income, you must _________ properties by class, etc., compute
measures of central tendency and dispersion, and determine the typical per-unit value -
Answer- stratify
Property taxes should not be included when estimating _________ - Answer- expense
ratio
List three factors that should be considered when stratifying properties or specifying
models for the development of GIMs and OARs - Answer- a. building type
b. location
c. age or condition
The formula for gross income model is _________ - Answer- MV = GI x GIM
two basic methods of estimating gross income in mass appraisal are _________ and
_________ - Answer- stratification, modeling
, The dependent variable in gross income models should be_________ - Answer- gross
income per unit
Independent variables in gross income models should be _________ that are important
in explaining differences in gross income - Answer- property characteristics
the dependent variable in expense ratio models should be the _________ - Answer-
overall expense ratio
Real estate prices are a function of supply and demand operating simultaneously within
a market. The _________ factors relate to availability, _________ factors include such
things as condition, size and location - Answer- supply, demand
An appraiser establishes the date of value opinion, defines the value to be developed,
and identifies the property rights to be appraised, this is part of ___________ - Answer-
defining the valuation problem
The definition of mass appraisal is the systematic appraisal of groups of properties, as
of a given date, using standardized procedures and ________ - Answer- statistical
testing
Building costs, economic conditions and interest rates are __________ factors -
Answer- supply
Location, condition, and construction quality are _______ factors - Answer- demand
The basic structure of a model for the sales comparison approach is ________ -
Answer- MVs = Sc + ADJc
__________ involves the determination of what data to include the model and in what
format - Answer- Model specification
Determining the rates used in a mode, such as adjusting formulas, tables or schedules
to the current market is known as ___________ - Answer- Model calibration
MV=LV+BV is the basic model structure for the ____ approach - Answer- cost
Net operating income and capitalization rates are requirements for the _____ approach
- Answer- income approach
Property valuation models seek to explain or predict the _________ - Answer- market
value
The hybrid cost model would be ________ - Answer- MV=GQx[(PsubL x LSIZE) +
(PsubL x BSIZE)] + OA
100% CORRECT ANSWERS
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
A technique that can be used to group similar subdivisions into neighborhoods -
Answer- cluster analysis
MV = GQ x [(Pi X Qi) + (Pl x Ql) + OA is known as the_________ model - Answer-
hybrid (generic)
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 values, the most appropriate units would have low
measures of _________ - Answer- dispersion
The formula for net income model is _________ - Answer- MV= NOI / OAR
When estimating gross income, you must _________ properties by class, etc., compute
measures of central tendency and dispersion, and determine the typical per-unit value -
Answer- stratify
Property taxes should not be included when estimating _________ - Answer- expense
ratio
List three factors that should be considered when stratifying properties or specifying
models for the development of GIMs and OARs - Answer- a. building type
b. location
c. age or condition
The formula for gross income model is _________ - Answer- MV = GI x GIM
two basic methods of estimating gross income in mass appraisal are _________ and
_________ - Answer- stratification, modeling
, The dependent variable in gross income models should be_________ - Answer- gross
income per unit
Independent variables in gross income models should be _________ that are important
in explaining differences in gross income - Answer- property characteristics
the dependent variable in expense ratio models should be the _________ - Answer-
overall expense ratio
Real estate prices are a function of supply and demand operating simultaneously within
a market. The _________ factors relate to availability, _________ factors include such
things as condition, size and location - Answer- supply, demand
An appraiser establishes the date of value opinion, defines the value to be developed,
and identifies the property rights to be appraised, this is part of ___________ - Answer-
defining the valuation problem
The definition of mass appraisal is the systematic appraisal of groups of properties, as
of a given date, using standardized procedures and ________ - Answer- statistical
testing
Building costs, economic conditions and interest rates are __________ factors -
Answer- supply
Location, condition, and construction quality are _______ factors - Answer- demand
The basic structure of a model for the sales comparison approach is ________ -
Answer- MVs = Sc + ADJc
__________ involves the determination of what data to include the model and in what
format - Answer- Model specification
Determining the rates used in a mode, such as adjusting formulas, tables or schedules
to the current market is known as ___________ - Answer- Model calibration
MV=LV+BV is the basic model structure for the ____ approach - Answer- cost
Net operating income and capitalization rates are requirements for the _____ approach
- Answer- income approach
Property valuation models seek to explain or predict the _________ - Answer- market
value
The hybrid cost model would be ________ - Answer- MV=GQx[(PsubL x LSIZE) +
(PsubL x BSIZE)] + OA
