A lender runs several models in sequence and uses the first that returns a high confidence score. What is this practice called?
Correct Answer
A) A model cascade
Why this is correct: A model cascade is a sequence of valuation models ordered by expected reliability. The system uses the first model that returns a high-confidence result for a given property, improving coverage. As the original explanation notes, this means the estimate's provenance varies, which is important for testing and review. Why the other choices are wrong: A hedonic ladder is not a standard term for this practice; it may refer to a hedonic pricing model, which is a single model type. A repeat sales index is a specific method for tracking price changes over time for the same properties. A confidence audit is a review of model reliability, not the sequential use of models. Exam tip: Remember that 'cascade' implies a fallback sequence, which is key to this definition.
Why This Is the Correct Answer
Why this is correct: A model cascade is a sequence of valuation models ordered by expected reliability. The system uses the first model that returns a high-confidence result for a given property, improving coverage. As the original explanation notes, this means the estimate's provenance varies, which is important for testing and review. Why the other choices are wrong: A hedonic ladder is not a standard term for this practice; it may refer to a hedonic pricing model, which is a single model type. A repeat sales index is a specific method for tracking price changes over time for the same properties. A confidence audit is a review of model reliability, not the sequential use of models. Exam tip: Remember that 'cascade' implies a fallback sequence, which is key to this definition.
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