Download Ch 15 Review Quiz Questions - appraisal-educ

CHAPTER 15 SUPPLEMENTAL QUIZ QUESTIONS
1.
If the average price of houses today is $240,000, compared to $225,000 one year ago, what
is the percent of change?
a.
b.
c.
d.
2.
A house sold for $300,000, which was 96% of the list price. What did the house list for?
a.
b.
c.
d.
3.
134 square yards
178 square yards
534 square yards
None of these
How many square feet are there in a rectangular-shaped building that is 34 feet wide and 72
feet long?
a.
b.
c.
d.
5.
$312,500
$288,000
$287,500
$312,000
How many square yards of carpeting will be needed to cover a floor area of 1,600 square
feet? Round your answer up to the next full square yard.
a.
b.
c.
d.
4.
6.25%
6.7%
5%
6%
212 square feet
2,368 square feet
2,448 square feet
None of these
George owns a triangular-shaped lake lot that has a road frontage (base) of 76 feet and a
depth of 125 feet. What is the area of George's lot?
a.
b.
c.
d.
277 square feet
4,750 square feet
9,500 square feet
None of these
© Dearborn Real Estate Education, 2005
Fundamentals of Real Estate Appraisal, 9th Edition
Chapter 15 Questions
6.
Apex Lumber is planning to build a warehouse that will be 100 feet wide by 250 feet long.
Walls will be 12 feet high and the building will have a flat roof. How many cubic feet of
space will Apex have when the warehouse is completed?
a.
b.
c.
d.
7.
A building's construction cost was $625,000. The building is 80 feet long, 45 feet wide and
12 feet high. What was the cost of this building per cubic foot?
a.
b.
c.
d.
8.
an aggregate.
statistics.
a population.
a parameter.
The total, or sum, of all variates is called
a.
b.
c.
d.
10.
$6.91
$16.44
$72
None of these
The science of collecting, classifying and interpreting information based on the numbers of
things is called
a.
b.
c.
d.
9.
4,200 cubic feet
8,400 cubic feet
300,000 cubic feet
306,000 cubic feet
a parameter.
the standard deviation.
the average deviation.
an aggregate.
Another word for average is
a.
b.
c.
d.
mode.
mean.
median.
standard deviation.
© Dearborn Real Estate Education, 2005
Fundamentals of 'Real Estate Appraisal, 9th Edition
Chapter 15 Questions
11.
The median is
a.
b.
c.
d.
12.
the average.
the midpoint.
the range of the data.
the most frequently occurring variate.
The mode is
a.
b.
c.
d.
the average.
the midpoint.
the difference between the highest and lowest variates.
the most frequently occurring variate.
Questions 13 through 17 are based on the selling prices of the following seven houses
1
.
2.
3.
4.
5.
6.
7.
$100,000
$125,000
$125,000
$175,000
$180,000
$200,000
$285,000
13.
What is the mean price of the houses sold?
a.
b.
c.
d.
14.
What is the median price of the houses sold?
a.
b.
c.
d.
1
$170,000
$185,000
$125,000
$175,000
$170,000
$185,000
$125,000
$175,000
Dearborn Real Estate Education, 2005
Fundamentals of Real Estate Appraisal, 9th Edition
Chapter 15 Questions
15.
What is the mode?
a.
b.
c.
d.
16.
What is the range?
a.
b.
c.
d.
17.
$170,000
$185,000
$125,000
$175,000
The aggregate of the house sales is
a.
b.
c.
d.
18.
$170,000
$185,000
$125,000
$175,000
$655,000
$1,065,000
$1,190,000
None of these
Using Figure 15.1 in the text, find the future value of $10,000 assuming interest at 10%
compounded annually for 10 years.
a.
b.
c.
d.
$25,937
$16,105
$27,070
$26,851
DISCUSSION QUESTIONS
1.
Real estate appraising requires the use of a wide variety of mathematical techniques ranging
from simple arithmetic through the use of algebraic formulas to the statistical techniques of
regression analyses. Discuss.
2.
Discuss the role of statistics and regression analysis in real estate appraisal.
1
Dearborn Real Estate Education, 2005
Fundamentals of Real Estate Appraisal, 9th Edition
Chapter 15 Questions
Capsule summary of topics to cover
1.
Statistical analysis in real estate appraisal is an objective approach which can
improve the accuracy of value estimates. All appraisers should know how to use
statistics and regression analysis in the valuation of real property.
2.
Simple linear regression is a process in statistics for predicting the value of an
unknown variable from the known value of another variable assuming a linear
relationship. In multiple regression, more than one variable is used, and the detailed
mathematical computations involved generally require a computer or programmable
calculator.
3.
Statistical presentation of data in an appraisal report is often in the graphic form of
tables, bar charts, histograms and line graphs.
4.
All the variates in a particular group make up the population of that group. In
statistical analysis, the appraiser must usually rely on a sample or some of the
population. Characteristics of the sample are expressed in mathematical symbols
and equations, with the variates represented by letters of the alphabet.
5.
A measure of central tendency describes the typical variate in a population. This
measure may be the arithmetic mean or average, the median or the mode, depending
on the type of data and its use.
6.
A measure of dispersion describes differences in a population. This measure may be
the range or the standard deviation. The standard deviation is the most accurate
measure of dispersion, assuming a normal distribution. In statistical analysis, normal
distribution is represented by a bell-shaped curve.
7.
Random sampling implies that any one item or sample selected from a population
has the same chance of being selected as any other. Random number tables appear
in books on statistics.
8.
The mean of a population can be estimated from a large sample of 30 or more items,
or from a small sample of 29 or less. Different symbols are used for the sample,
mean, and standard deviation where a sample rather than total population is used.
9.
In the small sample, adjustment must be made for the number of degrees of freedom
lost. Degrees of freedom are represented by the number of observations less the
number of unknowns.
© Dearborn Real Estate Education, 2005
Fundamentals of Real Estate Appraisal, 9th Edition
Chapter 15 Questions
10.
In addition to predicting the value of an unknown variable, linear regression may be
used to measure the average difference between actual and estimated value. It may
also be used to measure the proportion of variation in one item that can be explained
by a variation in another.
11.
Multiple regression is being used by an increasing number of appraisers in valuing
real estate. But it does present some problems. Among them is the fact that the data
is assumed to be linear and not curved, and that the distribution is normal.
SUPPLEMENTAL READINGS
Students who continue to have difficulty with mathematical computations are referred to Mastering
Real Estate Mathematics, 7th Edition, by Ventolo, Tamper, and Allaway (Chicago, Dearborn™
Real Estate Education, 2002).
Dearborn Real Estate Education, 2005