Sales C ($341,000, with pool) and D ($326,500, no pool) are otherwise equivalent and sold the same month. The indicated pool adjustment is:
Correct Answer
A) $14,500 from this pair, to be checked against other pairs
Why this is correct: Paired data analysis isolates the value of a single feature by comparing two otherwise similar sales that differ only by that feature. Here, the $14,500 price difference is directly attributable to the presence of the pool, given the sales are equivalent in all other aspects and occurred at the same time. This single pair provides an initial indication, which must then be tested against other market data for reliability. Why the other choices are wrong: "$7,250, splitting the observed gap" incorrectly assumes the value should be averaged between the two properties. "$33,850, a tenth of the average price" is an arbitrary calculation unrelated to the paired data method. "Zero, since pools rarely return cost" introduces an unsupported market assumption; the analysis must be based on the observed market data. Exam tip: In paired sales, the adjustment is the full price difference for the feature, not half. Always verify the indication with additional data pairs.
Why This Is the Correct Answer
Why this is correct: Paired data analysis isolates the value of a single feature by comparing two otherwise similar sales that differ only by that feature. Here, the $14,500 price difference is directly attributable to the presence of the pool, given the sales are equivalent in all other aspects and occurred at the same time. This single pair provides an initial indication, which must then be tested against other market data for reliability. Why the other choices are wrong: "$7,250, splitting the observed gap" incorrectly assumes the value should be averaged between the two properties. "$33,850, a tenth of the average price" is an arbitrary calculation unrelated to the paired data method. "Zero, since pools rarely return cost" introduces an unsupported market assumption; the analysis must be based on the observed market data. Exam tip: In paired sales, the adjustment is the full price difference for the feature, not half. Always verify the indication with additional data pairs.
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