Download IAAO 311 Review Questions and Quizzes Already Graded A+ 2025 Latest and more Exams Nursing in PDF only on Docsity!
IAAO 311 Review Questions and Quizzes
Already Graded A+ 2025 Latest
What is a requirement of both single-property and mass appraisal?
Uses three basic approaches to value
What is the first step in the mass appraisal process?
definition of the problem
List the three types of data that must be collected in analyzing the market.
General data
Specific data
Comparative data
Identifying supply and demand factors that best explain values in a specific market, and expressing them in an equation is called ______________________________________.
model specification
Developing adjustment weights or coefficients from measurable supply and demand factors that include quantitative factors describing the improvements and qualitative judgments affecting land and/or improvement value is called ____________________________________.
model calibration
List the five determinants of demand:
Price
Price of related commodities
Consumer tastes and preference
Consumer's income
Consumer expectations
List the three determinants of supply:
Price
Availability and cost of related goods
Technology
A ____________ helps evaluate what data to collect and the best way to collect it.
pilot study
IAAO standards recommend routine property inspections at least every ________ years.
six
List four methods of obtaining income and expense data:
Mail questionnaires
Telephone
Personal contact
Industry and trade publications
The square foot area of a residence is considered ___________ _____________ data while the condition rating is considered _______ ___________ data.
The division of one variable by another, for example square feet by number of rooms, is termed a ________________ transformation.
quotient
______________ or ________________ areas are broad geographic areas subject to similar economic influences.
Market
economic
______________ or ____________________ are groups of properties that share similar location amenities.
sub-areas
neighborhood
____________ ___________ are used primarily in the development of MRA models, while ________ are used to develop regression variables.
Market areas
sub-areas
A method of stratification operating on the principle of minimizing differences within groups and maximizing differences among groups is known as _________ ___________.
cluster analysis
_____________ are those values that include given percentages of the data set.
Percentiles
When data is normally distributed, approximately ____ percent lie within one standard deviation, ____ percent within two standard deviations, and ____ percent within three standard deviations of the mean.
68
95
99
____________________________ show the relationship between two qualitative variables.
Cross-tabulations
_______________________________________ can be used to show several variables simultaneously.
Polygons (line charts)
The analysis of a continuous variable with two qualitative variables can be accomplished using ____________ __________ or ______________ ________.
contingency tables
three-dimensional plots
In testing variables, two primary statistical tests can be used. However, a ______________ test assumes that the data is normally distributed, while a _______________ test requires no assumption about the distribution of the data.
parametric
non-parametric
The IAAO standard for the COD for residential property is ____ or less for properties in newer, relatively homogeneous areas and ______ are less in older, heterogeneous areas.
10
15
The _________________________________________ expresses the standard deviation as a percentage, making comparisons among groups easier.
coefficient of variation (COV)
The predictive power of the coefficient of variation (COV) depends on the extent the data is ___________________ ________________.
normally distributed
A scatter diagram depicting the relationship between sales ratio and effective age that portrays a downward sloping trend indicates a ________________ correlation showing ______________ ratios for older residences.
negative
lower
The price-related differential (PRD) is calculated by dividing the _______ by the _______-mean.
mean
weighted
PRDs greater than 1.03 indicates relative ______ appraisal of higher value parcels while PRDS less than 0.98 indicates relative ______ appraisal of higher value parcels.
under
over
What is most likely to increase the current demand for owner-occupied residential property?
Expected increase in future home prices
Data mailers are most frequently used to:
verify existing property data
Scalar values are best centered on 1.00 in:
Multiplicative models
What statistical technique would be most appropriate for grouping similar subdivisions for modeling purposes?
Cluster analysis
Assume that the average age of homes in a neighborhood is 25 years and that the standard deviation is 3 years. Assuming that the data are normally distributed, approximately 95% of the homes will fall in what age bracket?
19-
In the cost approach model, construction costs represent the ____________________ side of the market, while depreciation represents the ___________ side of the market.
supply
demand
Since the supply of land is essentially fixed, the price of land in a given area will be determined by demand factors such as:
Population density
Rate of growth
Employment levels
Income levels
Availability of transportation systems
Interest rates
The first step in specifying cost models is to ________ improvements into homogeneous groups.
stratify
In developing a cost table, a _________________ can be used to develop the relationship between the cost per square foot and area.
scatter diagram
Adjustments for variations from base specifications in the cost model can take the form of _________________, dollars per square foot, other per unit costs, or ______ ______ dollar costs.
multipliers
lump sum
List three types of sales that should be excluded when deriving depreciation schedules from the market:
Mixed-use parcels
parcels with additional buildings
parcels with extreme land-to-building ratios
After plotting percent good or accrued depreciation against effective age, a curve can be fitted to the data using any one of the following three ways:
Visually by hand
Using graphics software
Using multiplicative or nonlinear MRA
Market calibration of cost models can best be accomplished by using _________________ or through the use of ________________________________________________________.
ratio studies
multiple regression analysis (MRA)
Market calibration of cost models can best be accomplished by using _________________________ or through the use of ______________________________________________________.
ratio studies
multiple regression analysis (MRA)
In mass appraisal, the sales comparison approach uses either the ________________, ______________, or _____________ model formats to arrive at final value estimates.
additive
In regression statistics, the standard deviation of the regression error is termed the ______________________________________.
standard error of estimate (SEE)
The ratio of a regression coefficient to its standard error is called the _______________, and the higher the ratio, the more significant the variable.
t-value
List three strengths and 3 limitations to feedback.
Strengths
Calibrates the generic model directly
not overly affected by outliers
Provides separate land and building values
Limitations
lacks the rich diagnostics of MRA
Algorithms proprietary and not completely documented
Software is relatively limited
Automated comparable sales provide a method of finding a given number of sales most comparable to the subject parcel. It is based on a comparable sale algorithm. However, the user must be able to determine the:
sales to be searched
variable used to define comparability
relative weight given to each variable
List 3 reasons for the importance of accurate land values:
jurisdictional credibility
cost models
market research and modeling
The _____________________________________ method of land valuation is appropriate when sales prices are affected by variations in size.
comparative unit
The _________ lot method of land valuation is appropriate when size is not a significant factor in the market.
base
List three types of models that can be used to estimate land values from sales data.
direct valuation models
decomposable models
additive MRA - with constant constrained to zero
List two methods of establishing improvement values in the sales comparison approach.
subtract land values from market model values
estimate direct as a part of a decomposable model
____________________________ are useful when implementing a new CAMA system or valuation techniques, because it provides a test on a sample or test value.
When evaluating accuracy using multiple regression, two goodness-of-fit statistics are:
R-square
Standard error of estimate
List 3 steps that can be taken to promote a greater understanding of multiple regression, other than conversion to the base home approach.
use simplified models
use stepwise MRA
use constrained MRA
List 4 typical update strategies that can be used by an assessor's office.
full recalibration
cyclical recalibration with interim adjustments
partial recalibration
use of previous year's values
In the cost approach model, construction costs represent the ______________________ side of the market and depreciation represents the __________________ side of the market.
supply
demand
The cost approach is closely related to a:
hybrid model structure
When variations in size affect sale price the _________________ of valuing land is most appropriate in mass appraisal.
comparative unit method
V=b0 + (b1 x1) + (b2 X2) + (b3 * X3) ... is an example of a/an model structure for the sales comparison approach.
additive
In regression statistics, the most accurate measure of the percentage of variation in sales prices explained by the model is the:
Adjusted R-square
In regression statistics, the _____________________ is the ratio of a regression coefficient to its standard error (The higher the ratio, the more significant the variable).
t-value
In multiple regression analysis, _____________________ represents the difference between actual and predicted sales prices.
Residuals
What employs the Euclidean distance metric?
automated comparable sales
In mass appraisal, multiple regression analysis (MRA) works on the principle of:
minimizing the squared errors between actual and predicted sales prices
