Why must sale data be verified before it is used in a statistical analysis?
Correct Answer
C) Statistical output cannot reveal a faulty input
Why this is correct: Statistical models process whatever numbers are input. If the input data is wrong (e.g., incorrect price, terms, or property characteristics), the output will be precisely calculated but based on garbage. The model itself cannot flag faulty inputs. Why the other choices are wrong: 'Verification is required by the Ethics Rule itself' is true but incomplete; the core analytical reason is the garbage-in-garbage-out principle explained above. 'Unverified data cannot be entered in a spreadsheet' is factually false. 'Verification allows the sample size to be reduced' is incorrect; verification ensures data quality, it doesn't directly permit a smaller sample. Exam tip: Garbage in, garbage out. A sophisticated analysis is only as good as the raw data it's built on.
Why This Is the Correct Answer
Why this is correct: Statistical models process whatever numbers are input. If the input data is wrong (e.g., incorrect price, terms, or property characteristics), the output will be precisely calculated but based on garbage. The model itself cannot flag faulty inputs. Why the other choices are wrong: 'Verification is required by the Ethics Rule itself' is true but incomplete; the core analytical reason is the garbage-in-garbage-out principle explained above. 'Unverified data cannot be entered in a spreadsheet' is factually false. 'Verification allows the sample size to be reduced' is incorrect; verification ensures data quality, it doesn't directly permit a smaller sample. Exam tip: Garbage in, garbage out. A sophisticated analysis is only as good as the raw data it's built on.
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?
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Paired sales analysis and regression differ mainly in that regression:
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