What does it mean to say a value conclusion is credible?
Correct Answer
D) That it is worthy of belief given the evidence
Why this is correct: Credibility means the conclusion is supported by sufficient, relevant evidence and logical analysis, making it believable for its intended use. Why the other choices are wrong: 'That it matches the contract price' confuses credibility with agreement; an appraisal can be credible without matching contract price. 'That it falls within the range of the indications' is necessary but not sufficient for credibility. 'That the client has accepted it' is irrelevant to evidential support. Exam tip: Credibility = worthy of belief based on evidence, not on client approval or price matching.
Why This Is the Correct Answer
Why this is correct: Credibility means the conclusion is supported by sufficient, relevant evidence and logical analysis, making it believable for its intended use. Why the other choices are wrong: 'That it matches the contract price' confuses credibility with agreement; an appraisal can be credible without matching contract price. 'That it falls within the range of the indications' is necessary but not sufficient for credibility. 'That the client has accepted it' is irrelevant to evidential support. Exam tip: Credibility = worthy of belief based on evidence, not on client approval or price matching.
More Reconciliation Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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