What distinguishes a census from a sample in market analysis?
Correct Answer
A) A census counts every member of the population
Why this is correct: In a census, data is collected from every single member of the defined population (e.g., every sale in a subdivision during a period). This eliminates sampling error because no subset is taken. Why the other choices are wrong: A sample, not a census, is drawn (often randomly) from the population. There is no minimum record count that defines a census. A census is defined by completeness, not by the age of transactions. Exam tip: Census = all. Sample = some. Even with a census, other errors (like data entry mistakes) can still occur.
Why This Is the Correct Answer
Why this is correct: In a census, data is collected from every single member of the defined population (e.g., every sale in a subdivision during a period). This eliminates sampling error because no subset is taken. Why the other choices are wrong: A sample, not a census, is drawn (often randomly) from the population. There is no minimum record count that defines a census. A census is defined by completeness, not by the age of transactions. Exam tip: Census = all. Sample = some. Even with a census, other errors (like data entry mistakes) can still occur.
More Statistics Questions
A set of comparable sales has a mean of $250,000 and a standard deviation of $20,000. What is the coefficient of variation?
A property sold for $400,000 and resold three years later for $463,050 with no physical change. What compound annual rate does this indicate?
A histogram of neighborhood sale prices shows two distinct peaks. What does this most likely mean?
What does it mean to validate a regression model?
In a market study, what does a frequency distribution of sale prices show?
An appraiser includes months elapsed since each sale as a variable in a price model. What is this intended to capture?
An appraiser presents a statistical analysis in a report. What must accompany it for the reader to weigh it?
An R-squared of 0.86 in a sales model indicates that:
Which measure would best summarize the most common lot size in a subdivision?
Paired sales analysis and regression differ mainly in that regression:
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