300 REVIEW QUESTIONS CHAPT 5.docx

Chapter 5 - Sales Data and Appraisal Uniformity Multiple Choice Test 1\. Three different ways of obtaining sales data from buyers and sellers are: a\) Mail questionnaire, property inspection, and field survey b\) Telephone interview, online survey, and property review c\) Personal interview, mai...

Chapter 5 - Sales Data and Appraisal Uniformity Multiple Choice Test 1\. Three different ways of obtaining sales data from buyers and sellers are: a\) Mail questionnaire, property inspection, and field survey b\) Telephone interview, online survey, and property review c\) Personal interview, mail questionnaire, and telephone interview d\) Field survey, email questionnaire, and personal inspection Answer: c) Personal interview, mail questionnaire, and telephone interview Explanation: These three methods are commonly used to gather sales data directly from buyers and sellers. Each method allows for direct communication and provides detailed responses, making them reliable for collecting accurate information. 2\. A \_\_\_\_\_\_\_\_\_\_ shows the number of ratios falling within specified intervals, and also reveals patterns and trends of a sample. a\) Scatter diagram b\) Histogram c\) Frequency distribution d\) Box plot Answer: c) Frequency distribution Explanation: A frequency distribution shows how data points (ratios) are distributed across intervals, helping identify patterns and trends in the data sample. 3\. A \_\_\_\_\_\_\_\_\_\_ is a graph showing the relationship between an independent variable and a dependent variable. a\) Bar graph b\) Line graph c\) Scatter diagram d\) Pie chart Answer: c) Scatter diagram Explanation: A scatter diagram visually represents the relationship between two variables, with one acting as the independent variable and the other as the dependent variable. 4\. The \_\_\_\_\_\_\_\_\_\_ is the midpoint or the middle ratio when ratios are arrayed. a\) Mode b\) Mean c\) Median d\) Range Answer: c) Median Explanation: The median is the middle value when a data set is ordered from lowest to highest. It is commonly used in appraisal studies to find the central tendency. 5\. A \_\_\_\_\_\_\_\_\_\_ is a bar chart or graph of frequency distribution. a\) Pie chart b\) Histogram c\) Scatter plot d\) Line graph Answer: b) Histogram Explanation: A histogram is a graphical representation of the frequency distribution of a data set. It uses bars to show the number of data points that fall within each interval. 6\. The most common measure of appraisal uniformity is the \_\_\_\_\_\_\_\_\_\_. a\) Median ratio b\) Coefficient of dispersion (COD) c\) Price-related differential (PRD) d\) Mean ratio Answer: b) Coefficient of dispersion (COD) Explanation: The COD is the most common measure of appraisal uniformity, indicating how much the values deviate from the median ratio, which reflects consistency in appraisals. 7\. The \_\_\_\_\_\_\_\_\_\_ is a measure of vertical equity in that it looks at the equity in appraisal of low-value and high-value parcels. a\) Coefficient of dispersion (COD) b\) Price-related differential (PRD) c\) Median ratio d\) Gini coefficient Answer: b) Price-related differential (PRD) Explanation: The PRD measures vertical equity by comparing the appraisal accuracy for low-value versus high-value properties, ensuring fairness across different value ranges. 8\. According to IAAO standards, the level of appraisal should fall between \_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_. a\) 0.80 and 1.20 b\) 0.90 and 1.10 c\) 1.00 and 1.20 d\) 0.85 and 1.15 Answer: b) 0.90 and 1.10 Explanation: According to International Association of Assessing Officers (IAAO) standards, the median ratio for appraisal should be between 0.90 and 1.10, ensuring that appraisals are neither too high nor too low compared to actual market values. 9\. According to IAAO standards, uniformity is measured by the coefficient of dispersion (COD), and for older heterogeneous residential property, the COD should be between \_\_\_\_\_\_\_\_\_\_ and \_\_\_\_\_\_\_\_\_\_. a\) 0.90 and 1.10 b\) 10.0 and 20.0 c\) 5.0 and 15.0 d\) 1.0 and 5.0 Answer: c) 5.0 and 15.0 Explanation: For older, heterogeneous residential properties, the COD should be between 5.0 and 15.0 according to IAAO standards. This range indicates acceptable levels of uniformity in appraisal values. 10\. \_\_\_\_\_\_\_\_\_\_ or \_\_\_\_\_\_\_\_\_\_ charts differ from other charts in that they can accommodate multiple data sets on the same graph. a\) Line, scatter b\) Histogram, frequency distribution c\) Bar, pie d\) Polygon, line Answer: d) Polygon, line Explanation: Polygon (line) charts are different from other charts because they can display multiple data sets on the same graph, making them useful for comparing trends across different variables.