Final exam study guide

A ______________ variable is defined as "the variable being estimated (outcome or response variable) in a predictive model such as a multiple linear regression equation."

dependent

Price is the __________ variable.

dependent

Analysis of central tendency is part of ____________ statistics.

descriptive

A(n) __________________ is a model where an independent variable's marginal contribution to the value of a dependent variable is constant over the entire range of the data.

linear model

All of the following are tools of the Fed, EXCEPT

loan to value ratio requirements

A $222,500 mortgage, with 6.75% interest, has a monthly payment of $1,691.81 How many years was the original term of the loan?

20

A $92,000 mortgage, with 7.2% interest, has a monthly payment of $695.32. How many years was the original term of the loan?

22

A property sold for $240,000 and the buyer put $50,000 down. The seller paid 2 points. How much was that?

240,000 - $50,000 = $190,000 mortgage. $190,000 X .02 = $3,800.

We have a $146,500 mortgage, for 25 years and the monthly payment is $989.28. What is the interest rate?

25 gn, 146,500 PV, 989.28 CHS PMT, i, 12 X Answer is 6.5%.

A $112,000 mortgage, with 6.4% interest, has a monthly payment of $727.09 How many years was the original term of the loan?

27

In the compound interest tables, which columns deal with present values?

4, 5, 6

Here are 10 gross income multipliers. 6.9 7.2 6.5 7.3 6.4 7.0 7.3 6.8 6.8 6.9 What is the range of the GIMs?

7.3 - 6.4 = .9

You bought a house for $256,000 and sold it for $295,000, minus a 5% commission. What was the net percentage of your gain?

9.5%

The ________ is most affected by extreme values.

mean

Which term is MOST similar to a common average?

mean

A 30-year mortgage has an interest rate of 5.9% and monthly payments of $1,156.62. What was the original mortgage amount?

$195,000

The _______ describes the middle value in an ordered array of numerical values.

median

If I deposit $22,000 in a bank account at 2.75% interest, how much will I have at the end of 9 years?

$28,084.01

Mass appraisal is most often associated with _______________ valuation purposes.

real estate tax assessment

An apartment owner needs to build up $30,000 to replace the boilers in 7 years. He decides to make semi-annual payments to an interest-bearing account paying 4.0%. How much are the semi-annual payments?

$ 1,841.23

How much do I have to put aside each year, at 6% interest, to accumulate $14,000 to replace a boiler in 9 years?

$1,149.35

If a 25-year mortgage has an interest rate of 6.8% and monthly payments of $1,179.92, what was the original mortgage amount?

$170,000

If a 20-year mortgage, with an interest rate of 6.15%, has monthly payments of $1,305.20; what was the original mortgage amount?

$180,000

If I put $3,500 in the bank at the beginning of every year for 10 years, at 4.0% interest, how much will I have at the end?

$43,702.23

A property has a first mortgage of $130,000, a second mortgage of $30,000, and a third mortgage of $15,000. It is foreclosed and sold for $165,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

$5,000, $30,000

Here are eight land sales. $65,000 $77,000 $62,500 $75,000 $80,000 $77,500 $72,500 $82,000 What is the average deviation?

$5,453.13. mean minus all numbers. add the total to get 43,625 then divide by #'s in set 43,625/8=5453.13

If I put $9,000 in the bank at the beginning of every year for 6 years, at 4.5% interest - how much will I have at the end?

$63,172.37

Here is a table showing 15 rents. Monthly rents $775 $800 $750 $825 $875 $850 $850 $750 $775 $850 $800 $800 $750 $900 $875 What is the modal rent?

$750, $800, and $850

What is the payment on a $750,000 mortgage at 6.2% annual interest for 15 years, with annual payments?

$78,234.36

Your stock went from $42 to $57.50 in three years. What is the average percent change per year?

12.3%. 42 ENTER 57.50 ?% 3 ÷ Answer is 12.3%.

Your stock went from $125 to $97.25 in 3 years. What is the average percent change per year?

125 ENTER 97.25 ?% 3 ÷ Answer is -7.40%

A property has a first mortgage of $180,000, a second mortgage of $40,000, and a third mortgage of $25,000. It is foreclosed and sold for $220,000. The holder of the third mortgage gets $________ and the holder of the second mortgage receives $ _________.

0, $40,000

In the compound interest tables, which columns deal with future values?

1, 2, 3

Here are 12 numbers. 41 56 38 61.5 49 59 32 67.5 60 52 47 44 What is the standard deviation?

10.66

Fractiles are intervals that total ____ of the distribution.

100

A standard IQ test has a mean of _____ and a standard deviation of _____.

100, 10

Which federal agency was formed to insure bank deposits?

FDIC

____________ loans are assumable without the permission of the lender.

FHA and VA

You could purchase an AVM from all of the following EXCEPT

Fannie Mae

_________ liens are liens placed on a property after a previous lien has been made and recorded.

Junior

Computer-assisted mass appraisals (CAMAs) were first adopted by _________________ in the ____________.

assessors, 1970s

The symbol for a variate is

X

"A debt secured by real estate with an interest rate that may move up or down following a specified schedule or in accordance with the movements of a standard or index to which the interest rate is tied" is the definition of a(n) ___________ rate mortgage.

adjustable

In mass appraisal, a _____________ model calculates value based on physical characteristics.

hedonic

An AVM by itself

is not an appraisal

"A measure of central tendency consisting of the numerical value or categorical characteristic that occurs most frequently in a sample or population " is the definition of

mode

"A representation describing an underlying logical structure, relationship, or behavior" is the definition of

model

"The interaction of buyers and sellers who trade short-term money instruments" is the definition of the ________ market.

money

Which is NOT a reason why statistics is becoming more important for appraisers?

most appraisals are performed with three to five comparable sales

In most cases, a mass appraisal model is some form of ____________ analysis.

multiple regression

What technique is used for analyzing the relationship between one dependent (outcome) variable and more than one (explanatory or predictor) variable?

multiple regression analysis

"A sample produced by an unscientific, non-random selection process" is the definition of a(n) ________________ sample.

nonprobability

"A symmetrical, bell-shaped curve that represents the distribution of a population of certain types of measurements or the frequency distribution of all possible means in large samples that may be drawn from an unknown population distribution" is the definition of

normal curve

Compounding and discounting are ___________.

opposites

"A categorical variable indicating rank order, such as small, medium, and large" is the definition of ___________ variable.

ordinal

"A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties is analyzed to isolate and estimate a single characteristic's effect on value or rent" is the definition of

paired data analysis

"In statistics, the result of a sample selection process where all members of a population or population stratum have the same probability of being selected" is the definition of

random sample

"A statistical method that examines the relationship between one or more independent variables and a dependent variable" is the definition of

regression analysis

R-squared (r2) measures how well the _________ fits the _________.

rgression line, data

"The standard deviation of a regression coefficient estimate" is the definition of

standard error

"A programmed algorithm for systematically building a multiple linear regression model by adding signficant variables, deleting insignificant variables, or both, and then assessing the model resulting from the addition or deletion" is the definition of

stepwise regression analysis

"In statistics, a population or entire body of possible data" is the definition of

universe

A(n) _______________ is "... a characteristic or attribute of an item, service, or individual that can change from observation to observation."

variable