What does it mean to say a data set has been cleaned before analysis?
Correct Answer
A) Errors and non-market sales have been resolved
Why this is correct: Errors and non-market sales have been resolved. The governing concept is data preparation. "Cleaning" involves verifying accuracy, correcting data entry errors, and identifying/removing non-arm's length transactions (e.g., family sales, foreclosures) that do not reflect market value. Why the other choices are wrong: Every sale below the median has been removed is wrong; that would bias the data, not clean it. The data has been rounded to whole thousands is a formatting step, not data cleaning. Only sales from the last quarter were retained is a selection based on time, not a cleaning process. Exam tip: Data cleaning aims to ensure a reliable, market-reflective sample; document any exclusions and the reasons.
Why This Is the Correct Answer
Why this is correct: Errors and non-market sales have been resolved. The governing concept is data preparation. "Cleaning" involves verifying accuracy, correcting data entry errors, and identifying/removing non-arm's length transactions (e.g., family sales, foreclosures) that do not reflect market value. Why the other choices are wrong: Every sale below the median has been removed is wrong; that would bias the data, not clean it. The data has been rounded to whole thousands is a formatting step, not data cleaning. Only sales from the last quarter were retained is a selection based on time, not a cleaning process. Exam tip: Data cleaning aims to ensure a reliable, market-reflective sample; document any exclusions and the reasons.
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