An appraiser writes that all three approaches were 'given equal consideration' and averages them. The methodological problem is:
Correct Answer
A) Averaging substitutes arithmetic for judgment about reliability
Why this is correct: Averaging substitutes arithmetic for judgment about reliability. Simply averaging three value indications treats them as equally reliable, which avoids the appraiser's responsibility to analyze and weigh the support for each figure. Why the other choices are wrong: Three approaches may never be averaged together is false; averaging is a method, but it must be justified, not automatic. The report should have used only two of the approaches is not necessarily true; all three may be developed. Equal consideration is not prohibited, but blind averaging without reasoned weighting is poor practice. Exam tip: Averaging without justification is a methodological red flag in reconciliation.
Why This Is the Correct Answer
Why this is correct: Averaging substitutes arithmetic for judgment about reliability. Simply averaging three value indications treats them as equally reliable, which avoids the appraiser's responsibility to analyze and weigh the support for each figure. Why the other choices are wrong: Three approaches may never be averaged together is false; averaging is a method, but it must be justified, not automatic. The report should have used only two of the approaches is not necessarily true; all three may be developed. Equal consideration is not prohibited, but blind averaging without reasoned weighting is poor practice. Exam tip: Averaging without justification is a methodological red flag in reconciliation.
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