The weighting produces $413,150. How should the final opinion of value be expressed?
Correct Answer
B) $413,000, rounded to the precision the evidence supports
Why this is correct: the inputs were adjustments and weights estimated to the nearest thousand, and a conclusion cannot be more precise than what produced it. Why the other choices are wrong: reporting $413,150 or a figure to the cent claims a precision no input possessed; rounding to $400,000 throws away thirteen thousand dollars of information the evidence does support.
Why This Is the Correct Answer
Why this is correct: the inputs were adjustments and weights estimated to the nearest thousand, and a conclusion cannot be more precise than what produced it. Why the other choices are wrong: reporting $413,150 or a figure to the cent claims a precision no input possessed; rounding to $400,000 throws away thirteen thousand dollars of information the evidence does support.
More Reconciliation Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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