Paired sales analysis and regression both derive adjustments. What is the essential difference?
Correct Answer
A) Regression uses many sales at once, pairing uses two
Why this is correct: Paired sales analysis directly compares two highly similar properties that differ in one characteristic to isolate the value of that trait. Regression analysis uses statistical modeling on a larger dataset of many sales to estimate the simultaneous influence of multiple characteristics. Why the other choices are wrong: 'Regression requires no verification of the sale data' is false; all appraisal methods require data verification. 'Paired sales analysis may not be used for adjustments' is incorrect; it is a primary method for deriving adjustments. 'Paired sales analysis produces statistical significance' is wrong; statistical significance is a concept from regression, not a direct output of a simple paired comparison. Exam tip: Pairing is simple but needs a perfect match; regression is powerful but needs more data and statistical understanding.
Why This Is the Correct Answer
Why this is correct: Paired sales analysis directly compares two highly similar properties that differ in one characteristic to isolate the value of that trait. Regression analysis uses statistical modeling on a larger dataset of many sales to estimate the simultaneous influence of multiple characteristics. Why the other choices are wrong: 'Regression requires no verification of the sale data' is false; all appraisal methods require data verification. 'Paired sales analysis may not be used for adjustments' is incorrect; it is a primary method for deriving adjustments. 'Paired sales analysis produces statistical significance' is wrong; statistical significance is a concept from regression, not a direct output of a simple paired comparison. Exam tip: Pairing is simple but needs a perfect match; regression is powerful but needs more data and statistical understanding.
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