Which substantive context most directly helps a reader assess the relevance of a statistical appraisal analysis?
Correct Answer
B) The data, study period and relevant market coverage
Reporting the relevant data, period and market coverage helps intended users assess applicability and support. Methods, material assumptions, software details or supplier qualifications may also matter in a particular assignment; they do not substitute for that substantive context. A claim of repeated arithmetic checks alone does not establish data relevance or model credibility.
Why This Is the Correct Answer
Option B is correct because the data, study period and relevant market coverage let intended users judge whether the analysis applies to the subject and effective date. Data should be current, relevant and collected consistently. Without this context, a reader cannot tell whether the results fit the assignment.
Why the Other Options Are Wrong
Option A: The software product name and version used for the analysis
Option A, the software product name and version, may matter in some assignments but does not tell the reader whether the data and market fit the subject. It is not the substantive context for relevance.
Option C: A statement that the arithmetic in each table was double-checked
Option C, a statement that the arithmetic in each table was double-checked, addresses computational accuracy, not relevance. Correct arithmetic on irrelevant data still yields an irrelevant analysis.
Option D: The data supplier’s credential title and years in business
Option D, the data supplier's credential title and years in business, may bear on source reliability but does not show whether the data match the subject's market and period.
What, when, where
Relevance rests on what data were used, when they come from and where the market is.
How to use: Use this when a question asks what information helps readers judge an analysis's relevance.
Exam Tip
Prefer answers about data, time period and market area over answers about software, credentials or arithmetic checks when the question asks about relevance.
Common Mistakes to Avoid
- -Treating software details as proof of relevance
- -Equating arithmetic accuracy with data relevance
- -Relying on supplier credentials instead of describing data scope
Concept Deep Dive
Analysis
This question tests which reported context most directly helps a reader judge whether a statistical analysis is relevant. Relevance depends on what data were used, the study period and the market covered. Software details, arithmetic checks and supplier credentials may matter but do not substitute for that substantive context.
Background Knowledge
For a statistical analysis to support an appraisal conclusion, its data must represent the relevant market and time frame. Reporting these elements lets intended users assess applicability. Transparency about data scope is a core part of credible reporting.
Real-World Application
An appraiser includes a regression-based adjustment and states that it uses 18 months of closed sales from the subject's school district. A reviewer can then judge whether that period and area match the subject's market.
More Statistics Questions
Sale prices are $270,000, $290,000, $300,000, $310,000, $330,000. Treat the listed observations as the complete population and divide by n when computing the standard deviation. Report to the nearest dollar.
A sales sampling frame systematically excludes a relevant part of the target market. What is the principal risk?
An appraiser estimates a market-wide price trend using only sales data from one brokerage that specializes in luxury homes, without checking how other segments are represented. What is the principal concern?
Compared with analyzing one matched sale pair for one feature, what can a suitably specified multiple regression do?
The base-period median sale price is $400,000 and the current-period median is $460,000. Compute the price relative defined as current ÷ base, as a decimal to three places.
The assessment-to-sale ratios are 0.8, 0.85, 0.9, 0.92, 0.95, 0.98, 1.02, 1.05, 1.08, 1.1, 1.15, 1.2. Calculate COD as [average absolute deviation from the median ÷ median]×100. For even n, average the two middle ratios. Report the COD as a percentage to two decimals.
Assessment-to-sale ratios are 0.94, 0.96, 0.98, 1, 1.01. Compute the arithmetic mean. Report as a decimal ratio to three places.
Market data show a first quartile sale price of $405,000 and a third quartile sale price of $495,000. What is the interquartile range, to the nearest dollar?
Assessment-to-sale ratios are 0.96, 0.98, 0.99, 1.01. Compute the arithmetic mean. Report as a decimal ratio to three places.
Given first quartile $400,000, median $440,000 and third quartile $500,000, compute the trimean (Q1+2×median+Q3)/4. Report to the nearest dollar.
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