Seasonal adjustment of market data is appropriate when:
Correct Answer
D) Comparing periods that fall in different parts of the year
Why this is correct: Seasonal adjustment is needed when comparing data from different seasons (e.g., a winter sale vs. a spring sale) to isolate market trends from regular seasonal patterns. The best control is year-over-year comparison. Why the other choices are wrong: "Any comparable sold more than six months ago" is not always true; time adjustment may suffice. "The subject property was built in a particular season" is irrelevant to market data. "The appraisal is performed during winter months" doesn't necessitate adjustment if all data is from winter. Exam tip: Adjust for seasonality only when comparing across seasons, not merely for age.
Why This Is the Correct Answer
Why this is correct: Seasonal adjustment is needed when comparing data from different seasons (e.g., a winter sale vs. a spring sale) to isolate market trends from regular seasonal patterns. The best control is year-over-year comparison. Why the other choices are wrong: "Any comparable sold more than six months ago" is not always true; time adjustment may suffice. "The subject property was built in a particular season" is irrelevant to market data. "The appraisal is performed during winter months" doesn't necessitate adjustment if all data is from winter. Exam tip: Adjust for seasonality only when comparing across seasons, not merely for age.
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