IAAO 300 EXAM WITH 100%
CORRECT ANSWERS
What do low measures of dispersion indicate? - Answer- the calculated measures of
central tendency will fit most properties in stratum
What are strengths of MRA - Answer- -rooted in market
-effective diagnostics
-less detailed data
-does not require separate estimate of land value
-availability
What are limitations of MRA - Answer- -poor values when data is inaccurate
-requires adequate sales
-values must be reviewed
-does not produce separate land & building values
-cannot calibrate hybrid models
-need 50-100 sales
-number of sales is 4 to 5 times variables
In development of per unit values, most appropriate units would have low measures of -
Answer- dispersion
Independent variables - Answer- -type of property
-location
-age
-condition
Most common approach to stratification in mass appraisal modeling - Answer-
geographic stratification
The calculation of appropriate units of comparison & the selection of the most
appropriate unit are based on - Answer- measures of central tendency & dispersion
Mass appraisal - Answer- the systematic appraisal of groups of properties as of a goven
date using standardized procedures & statistical testing
USPAP standards - Answer- -mass appraisal: 5 & 6
-single property appraisal: 1 & 2
Mass appraisal steps - Answer- 1. define the valuation problem
, 2. determine scope of work
3. create preliminary analysis & plan
4. select & collect data
5. determine highest & best use
6. apply appropriate valuation approaches
7. reconcile value & report value opinions
what are supply factors? - Answer- -building costs
-interest rates
-economic conditions
what are demand factors? - Answer- -construction quality
-condition
-location
-size
what are two steps in model building? - Answer- 1. model specification
2. model calibration
model specification - Answer- the design and determination of what data to include in
the model & in what format
model calibration - Answer- determining rates used in model, adjusting formulas, table
or schedules to the current market
establishing the date of value opinion, defining the value to be developed, and
identifying the property rights to be appraised is part of? - Answer- defining the valuation
problem
what are the 4 components of mass appraisal - Answer- 1.data collection &
maintenance
2.exploratory data analysis
3.model development
4.model application, review & reconciliation
ratio study - Answer- conducted to measure & evaluate the accuracy & uniformity of
new values
discrete data - Answer- 3 or more predefined values
ex: topography
estimating staff requirements - Answer- s=p/(r•t)
# parcels/(production rate•time available)=staff required
t=p/(r•s)
CORRECT ANSWERS
What do low measures of dispersion indicate? - Answer- the calculated measures of
central tendency will fit most properties in stratum
What are strengths of MRA - Answer- -rooted in market
-effective diagnostics
-less detailed data
-does not require separate estimate of land value
-availability
What are limitations of MRA - Answer- -poor values when data is inaccurate
-requires adequate sales
-values must be reviewed
-does not produce separate land & building values
-cannot calibrate hybrid models
-need 50-100 sales
-number of sales is 4 to 5 times variables
In development of per unit values, most appropriate units would have low measures of -
Answer- dispersion
Independent variables - Answer- -type of property
-location
-age
-condition
Most common approach to stratification in mass appraisal modeling - Answer-
geographic stratification
The calculation of appropriate units of comparison & the selection of the most
appropriate unit are based on - Answer- measures of central tendency & dispersion
Mass appraisal - Answer- the systematic appraisal of groups of properties as of a goven
date using standardized procedures & statistical testing
USPAP standards - Answer- -mass appraisal: 5 & 6
-single property appraisal: 1 & 2
Mass appraisal steps - Answer- 1. define the valuation problem
, 2. determine scope of work
3. create preliminary analysis & plan
4. select & collect data
5. determine highest & best use
6. apply appropriate valuation approaches
7. reconcile value & report value opinions
what are supply factors? - Answer- -building costs
-interest rates
-economic conditions
what are demand factors? - Answer- -construction quality
-condition
-location
-size
what are two steps in model building? - Answer- 1. model specification
2. model calibration
model specification - Answer- the design and determination of what data to include in
the model & in what format
model calibration - Answer- determining rates used in model, adjusting formulas, table
or schedules to the current market
establishing the date of value opinion, defining the value to be developed, and
identifying the property rights to be appraised is part of? - Answer- defining the valuation
problem
what are the 4 components of mass appraisal - Answer- 1.data collection &
maintenance
2.exploratory data analysis
3.model development
4.model application, review & reconciliation
ratio study - Answer- conducted to measure & evaluate the accuracy & uniformity of
new values
discrete data - Answer- 3 or more predefined values
ex: topography
estimating staff requirements - Answer- s=p/(r•t)
# parcels/(production rate•time available)=staff required
t=p/(r•s)
