Page 1 of 65
AICP EXAM AND STUDY GUIDE NEWEST 2025/2026
TEST BANK| COMPLETE 1500 REAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWER) GRADED A+| AICP EXAM PREP 2025 (MOST
RECENT!!)
capitalism .....ANSWER..... Industry/production and
exchange/trade are controlled by private owners seeking profit
and utility maximization. Maximizes individual freedom and
minimizes state intervention.
continuous .....ANSWER..... values in a continuous range (height,
temperature)
discrete .....ANSWER..... finite, integers
nominal data .....ANSWER..... named or labeled variables
(categorized) that do not include numerical values (ex. good,
bad)
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ordinal data .....ANSWER..... data that is both categorized and
ordered (pain on a scale of 1-10)
interval data .....ANSWER..... data that is ordered with explicit
indication of numerical difference between points (ex. Fahrenheit
or Celsius)
ratio data .....ANSWER..... data which is ordered, has an explicit
indication of numerical difference between points, and has non-
arbitrary zero (ex. Kelvin temp)
variance (statistics) .....ANSWER..... measure of how far a set of
values are spread out
standard deviation .....ANSWER..... a measure of variability that
describes an average distance of every score from the mean
(square root of variance)
low score = data clustered around mean
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z-score .....ANSWER..... the number of standard deviations a
particular score is from the mean (score-mean/standard
deviation)
mean .....ANSWER..... average
median .....ANSWER..... the middle score in a distribution; half the
scores are above it and half are below it; if even set of values,
add two middle values and divide by two
mode .....ANSWER..... the most frequently occurring score(s) in a
distribution
range .....ANSWER..... the difference between the highest and
lowest scores in a distribution
alpha level .....ANSWER..... agreed standard for rejecting the null
hypothesis. With an alpha of 0.05, researchers can reject the null
hypothesis
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population projection .....ANSWER..... based on past data to
predict future population
population forecast .....ANSWER..... selection of a projection that
is most likely to happen, can be reported in a range to make it
more accurate, can also adjust projection based on other
information
cost-benefit analysis .....ANSWER..... Developed by Jules Dupuit
1. Specify set of alternative projects
2. Decide whose benefits and costs count
3. Identify impacts (i.e. cost and benefits) over the life of the
project
4. Monetize all impacts
5. Discount benefits and costs to obtain present values and take
the net value. Net present value = PV of benefits - PV of costs
6. Perform sensitivity analyses
AICP EXAM AND STUDY GUIDE NEWEST 2025/2026
TEST BANK| COMPLETE 1500 REAL EXAM QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWER) GRADED A+| AICP EXAM PREP 2025 (MOST
RECENT!!)
capitalism .....ANSWER..... Industry/production and
exchange/trade are controlled by private owners seeking profit
and utility maximization. Maximizes individual freedom and
minimizes state intervention.
continuous .....ANSWER..... values in a continuous range (height,
temperature)
discrete .....ANSWER..... finite, integers
nominal data .....ANSWER..... named or labeled variables
(categorized) that do not include numerical values (ex. good,
bad)
,Page 2 of 65
ordinal data .....ANSWER..... data that is both categorized and
ordered (pain on a scale of 1-10)
interval data .....ANSWER..... data that is ordered with explicit
indication of numerical difference between points (ex. Fahrenheit
or Celsius)
ratio data .....ANSWER..... data which is ordered, has an explicit
indication of numerical difference between points, and has non-
arbitrary zero (ex. Kelvin temp)
variance (statistics) .....ANSWER..... measure of how far a set of
values are spread out
standard deviation .....ANSWER..... a measure of variability that
describes an average distance of every score from the mean
(square root of variance)
low score = data clustered around mean
,Page 3 of 65
z-score .....ANSWER..... the number of standard deviations a
particular score is from the mean (score-mean/standard
deviation)
mean .....ANSWER..... average
median .....ANSWER..... the middle score in a distribution; half the
scores are above it and half are below it; if even set of values,
add two middle values and divide by two
mode .....ANSWER..... the most frequently occurring score(s) in a
distribution
range .....ANSWER..... the difference between the highest and
lowest scores in a distribution
alpha level .....ANSWER..... agreed standard for rejecting the null
hypothesis. With an alpha of 0.05, researchers can reject the null
hypothesis
, Page 4 of 65
population projection .....ANSWER..... based on past data to
predict future population
population forecast .....ANSWER..... selection of a projection that
is most likely to happen, can be reported in a range to make it
more accurate, can also adjust projection based on other
information
cost-benefit analysis .....ANSWER..... Developed by Jules Dupuit
1. Specify set of alternative projects
2. Decide whose benefits and costs count
3. Identify impacts (i.e. cost and benefits) over the life of the
project
4. Monetize all impacts
5. Discount benefits and costs to obtain present values and take
the net value. Net present value = PV of benefits - PV of costs
6. Perform sensitivity analyses
