Two data sources report different sale prices for the same transaction. What should the appraiser do?
Correct Answer
D) Resolve the conflict by verifying the transaction
Investigate reliable transaction evidence to resolve the conflicting prices. Choosing the convenient figure introduces result-driven bias, and averaging two disputed numbers does not identify the actual consideration. If the conflict cannot be resolved adequately, reconsider the sale’s reliability and whether it can support the analysis; automatic deletion before investigation is unnecessary.
Why This Is the Correct Answer
Investigate reliable transaction evidence to resolve the conflicting prices. Choosing the convenient figure introduces result-driven bias, and averaging two disputed numbers does not identify the actual consideration. If the conflict cannot be resolved adequately, reconsider the sale’s reliability and whether it can support the analysis; automatic deletion before investigation is unnecessary.
More Statistics Questions
Sale prices are $270,000, $290,000, $300,000, $310,000, $330,000. Treat the listed observations as the complete population and divide by n when computing the standard deviation. Report to the nearest dollar.
A sales sampling frame systematically excludes a relevant part of the target market. What is the principal risk?
An appraiser estimates a market-wide price trend using only sales data from one brokerage that specializes in luxury homes, without checking how other segments are represented. What is the principal concern?
Compared with analyzing one matched sale pair for one feature, what can a suitably specified multiple regression do?
The base-period median sale price is $400,000 and the current-period median is $460,000. Compute the price relative defined as current ÷ base, as a decimal to three places.
The assessment-to-sale ratios are 0.8, 0.85, 0.9, 0.92, 0.95, 0.98, 1.02, 1.05, 1.08, 1.1, 1.15, 1.2. Calculate COD as [average absolute deviation from the median ÷ median]×100. For even n, average the two middle ratios. Report the COD as a percentage to two decimals.
Assessment-to-sale ratios are 0.94, 0.96, 0.98, 1, 1.01. Compute the arithmetic mean. Report as a decimal ratio to three places.
Market data show a first quartile sale price of $405,000 and a third quartile sale price of $495,000. What is the interquartile range, to the nearest dollar?
Assessment-to-sale ratios are 0.96, 0.98, 0.99, 1.01. Compute the arithmetic mean. Report as a decimal ratio to three places.
Given first quartile $400,000, median $440,000 and third quartile $500,000, compute the trimean (Q1+2×median+Q3)/4. Report to the nearest dollar.
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Previous Question
Two advertisements quote asking prices but the actual closed consideration is uncertain. Which step best addresses the actual completed sale price?
Next Question
Assessment-to-sale ratios are 0.88, 0.93, 0.96, 0.99, 1.02, 1.07, 1.11. Compute the arithmetic mean. Report as a decimal ratio to three places.