A model predicts a subject's value at $412,000 while the sales comparison grid indicates $455,000. What is the appropriate response?
Correct Answer
D) Examine both for the cause of the divergence
Why this is correct: The appropriate response is to examine both for the cause of the divergence. A significant discrepancy ($43,000) indicates a potential problem in one or both analyses that must be investigated before reconciliation, as the original explanation notes. Why the other choices are wrong: You should not automatically report the regression figure as more objective. You should not simply average the two indications, as this buries the problem. You should not discard the grid solely because the model uses more data; the grid may contain valid qualitative adjustments. Exam tip: A large gap between value indications is a red flag. Your job is to diagnose why, not to mechanically average them.
Why This Is the Correct Answer
Why this is correct: The appropriate response is to examine both for the cause of the divergence. A significant discrepancy ($43,000) indicates a potential problem in one or both analyses that must be investigated before reconciliation, as the original explanation notes. Why the other choices are wrong: You should not automatically report the regression figure as more objective. You should not simply average the two indications, as this buries the problem. You should not discard the grid solely because the model uses more data; the grid may contain valid qualitative adjustments. Exam tip: A large gap between value indications is a red flag. Your job is to diagnose why, not to mechanically average them.
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