Three adjusted indications come in at $304,000, $306,000 and $309,000, all with gross adjustments near 8%. What conclusion does this support?
Correct Answer
A) A value near $306,000, since the three agree closely and are equally reliable
Why this is correct: three indications inside five thousand dollars, each requiring similar adjustment, is about as strong as sales comparison evidence gets, and the center of that cluster is what it points to. Why the other choices are wrong: choosing the highest or the lowest picks a number for a reason outside the evidence; and three closely agreeing indications are precisely the case where a point estimate is supportable.
Why This Is the Correct Answer
Why this is correct: three indications inside five thousand dollars, each requiring similar adjustment, is about as strong as sales comparison evidence gets, and the center of that cluster is what it points to. Why the other choices are wrong: choosing the highest or the lowest picks a number for a reason outside the evidence; and three closely agreeing indications are precisely the case where a point estimate is supportable.
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