Why should statistical conclusions be reconciled with traditional appraisal analysis rather than replacing it?
Correct Answer
B) Each rests on assumptions the other can test
Why this is correct: Each rests on assumptions the other can test. The governing concept is reconciliation and critical analysis. Statistical models assume the selected variables explain value; traditional sales comparison assumes the appraiser's adjustments are correct. Disagreement between methods can reveal flaws in either set of assumptions. Why the other choices are wrong: Statistics are prohibited as a primary method is false; they are a valid analytical tool. Traditional analysis is always more accurate is an unsupported generalization. Reconciliation is required for lending work only is false; reconciliation is a fundamental appraisal step regardless of intended use. Exam tip: Use statistical and traditional methods to cross-check each other; reconciliation is where professional judgment is applied.
Why This Is the Correct Answer
Why this is correct: Each rests on assumptions the other can test. The governing concept is reconciliation and critical analysis. Statistical models assume the selected variables explain value; traditional sales comparison assumes the appraiser's adjustments are correct. Disagreement between methods can reveal flaws in either set of assumptions. Why the other choices are wrong: Statistics are prohibited as a primary method is false; they are a valid analytical tool. Traditional analysis is always more accurate is an unsupported generalization. Reconciliation is required for lending work only is false; reconciliation is a fundamental appraisal step regardless of intended use. Exam tip: Use statistical and traditional methods to cross-check each other; reconciliation is where professional judgment is applied.
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