What connects a ratio study to the evaluation of model performance?
Correct Answer
D) It compares modelled values against actual prices
Why this is correct: A ratio study is the primary tool for evaluating a mass appraisal model's performance. It statistically compares the model's estimated values (e.g., assessed values) against actual, verified sale prices to measure accuracy (level) and consistency (uniformity). Why the other choices are wrong: It does not confirm a vendor's licensing status. It does not replace random sample testing; it often relies on it. It does not set a confidence score for each estimate; that is a separate model output. Exam tip: Ratio study = model check. Key metrics are median ratio (level) and coefficient of dispersion (uniformity).
Why This Is the Correct Answer
Why this is correct: A ratio study is the primary tool for evaluating a mass appraisal model's performance. It statistically compares the model's estimated values (e.g., assessed values) against actual, verified sale prices to measure accuracy (level) and consistency (uniformity). Why the other choices are wrong: It does not confirm a vendor's licensing status. It does not replace random sample testing; it often relies on it. It does not set a confidence score for each estimate; that is a separate model output. Exam tip: Ratio study = model check. Key metrics are median ratio (level) and coefficient of dispersion (uniformity).
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