Statistics, Modeling and Finance Practice Exam

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• What accurately describes an Automated Valuation Model (AVM)?
• What financial term describes a contract securing the right to receive future payments?
• What two aspects can the Fed influence regarding money?
• If a new monthly rent of $950 is added, what can be inferred regarding the new mean?
• In a predictive model, what is the term for the variable being estimated?
• If a 30-year mortgage has monthly payments of $1,156.62 and an interest rate of 5.9%, what was the original mortgage amount?
• A large sample consists of how many or more observations?
• In the context of monthly rents, what does 'compounding' typically refer to?
• What is the standard deviation of the following 12 numbers: 41, 56, 38, 61.5, 49, 59, 32, 67.5, 60, 52, 47, 44?
• What is the term for a subset of a population selected for analysis?
• What is a characteristic of a sample in statistics?
• You may purchase an AVM from all of the following EXCEPT?
• Based on the following rents: $775, $800, $750, $825, $875, $850, $850, $750, $775, $850, $800, $800, $750, $900, $875, what is the modal rent?
• Which of the following terms is synonymous with seller financing that includes existing mortgage retention?
• Which type of loan is guaranteed by the government?
• What is the term for a systematic error in statistics?
• In a mortgage of $178,500 over 30 years with a monthly payment of $1,128.24, what is the interest rate?
• Considering the following amounts: $850, $885, $910, $825, $800, $900, $925, what is the mode?
• What kind of mortgage is defined as one with an interest rate that may adjust according to market conditions?
• What aspect does the monetary policy of the Fed primarily focus on?
• A statistical model that relies on a set of predictors to understand a dependent variable's behavior is called?
• Computer-assisted mass appraisals (CAMAs) were first adopted by which group in the 1970s?
• What is defined as a listing of observations in a specific order?
• What term refers to the number of values in a calculation of a statistic that are free to vary?
• Which measure is considered the prime measure of central tendency?
• If $8,000 is deposited every year for 12 years at 3.2% interest, what will the total amount be at the end?
• Where are unbundled mortgage models typically found?
• What is the average deviation of the following land sales: $65,000, $77,000, $62,500, $75,000, $80,000, $77,500, $72,500, $82,000?
• The statistical method used for making predictions based on past data trends is called?
• True or False: Automated Valuation Models (AVMs) were conceived as a way of replacing appraisers in financing transactions.
• The application of computer technology and statistical techniques to solve appraisal problems is referred to as?
• When comparing compounding and discounting, which of the following statements is true?
• A property with first, second, and third mortgages of $150,000, $25,000, and $10,000 respectively is sold for $170,000. How much does the second mortgage holder get?
• Which type of loans are assumable without the permission of the lender?
• What does "items of information used to draw conclusions about, or to describe, a population" refer to in statistics?
• For which purpose is a probability sample generally preferred in statistics?
• What is the future value of an investment if $25,000 is deposited at an annual interest rate of 5% for 10 years?
• Which term best defines "computer software that queries property and market data to assign a value to a property"?
• In compound interest tables, which columns deal with present values?
• What is the present value of $38,000 to be received in 9 years, discounted at 6%?
• What significant event occurred with Fannie Mae and Freddie Mac in 2008?
• If $22,000 is deposited in a bank account at 2.75% interest, how much will be in the account after 9 years?
• When performing mass appraisals, assessors primarily focus on what aspect of properties?
• What is the range of the given 12 recent sales?
• What is the mean of the given 12 recent sales?
• How much must be set aside each year at a 6% interest rate to accumulate $18,000 in 6 years?
• To build up $30,000 in seven years at 4.0% interest with semi-annual payments, how much is needed?
• Which of the following definitions best describes ‘sampling error’?
• What type of analysis involves assessing how well a model explains observed outcomes?
• Which loans are typically backed by the government and often more accessible to first-time home buyers?
• Which of the following is MOST similar to a common average?
• What formula is commonly used to determine the future value of an annuity?
• In the context of automated valuation models, which is a key data component?
• What is the mean of the following land sales: $45,000, $37,000, $34,500, $48,000, $41,000, $47,500, $39,500, $51,000?
• To whom is the Federal Reserve accountable?
• Which of the following rents appears most frequently in the provided data?
• If I need to save for a boiler costing $14,000 in nine years at a 6% interest rate, how much should I set aside each year?
• What is defined as "an estimate of the variability inherent in a statistical forecast"?
• The specification of a zone within a population, based on a sample mean and its standard error, within which the true mean most probably lies is called?
• What is the result of the calculation (145.78 + 216.82) X (590.50 - 188.25) ÷ 46.12?
• If the rent $900 is eliminated from the list, what effect would it have on the mean rent?
• Which measure describes the central position in a data array?
• Which of the following is the most common competitor for mortgage funds?
• 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?
• What is the maximum amount received by the holder of the second mortgage in a property with first, second, and third mortgages totaling $195,000 when sold?
• After a series of deposits and withdrawals, what is the new bank balance if you started with $2,754.40 and made multiple transactions?
• In statistical analysis, what does a higher degree of freedom indicate?
• What is the present value of receiving $38,000 in nine years, discounted at 6%?
• What percentage of the mortgage loan amount does a point represent?
• What is the definition of a chart or visual representation of data that refers to two axes?
• What is the main role of the Federal Reserve in monetary policy?
• What definition pertains to "a quantitative technique used to identify and measure adjustments to the sale prices of comparable properties"?
• Which statistical method can be used to assess the spread of the monthly rent data?
• If a stock price increased from $124 to $188 over 3 years, what is the average percent change per year?
• What describes the first step in measuring central tendency for a dataset?
• Which of the following is NOT a secondary market participant?
• How much should you save each year at an interest rate of 4.5% to accumulate $25,000 in 7 years?
• If a property with a first mortgage of $130,000, a second mortgage of $30,000, and a third mortgage of $15,000 sells for $165,000, how much does the holder of the second mortgage receive?
• Which columns in the compound interest tables provide present values as outputs?
• What is the term for the difference between an observation and the measure of central tendency without regard to the sign?
• A property with a total of three mortgages sells for $220,000. What amount does the holder of the second mortgage receive?
• A condominium building needs to save $50,000 in 8 years with a savings account that yields 3.75% interest. What are the required quarterly payments?
• What calculation would you use to determine the total interest paid over the life of a loan?
• The term "hybrid" in valuation refers to which of the following?
• Approximately what percentage of observations in a normal distribution fall within one standard deviation of the mean?
• With a simple moving average, what is the primary purpose of calculating average values over a selected period?
• What does the term universe refer to in statistics?
• What is the most common use of mass appraisal for real property?
• In a normal distribution, approximately what percentage of observations fall within two standard deviations from the mean?
• When the seller retains the existing mortgage while lending additional money, what is this transaction called?
• When a property is sold for $195,000, how much is left for the third mortgage holder given first and second mortgage claims?
• What is the annual payment on a $750,000 mortgage at 6.2% for 15 years?
• A property with a first mortgage of $130,000 and a second mortgage of $30,000 sells for $165,000. How much will the holder of the third mortgage receive?
• What does the term "money supply" refer to in economic terms?
• What type of interest is calculated on both the initial principal and the accumulated interest from previous periods?
• To accumulate $15,000 for a boiler in 10 years at 4% interest, how much should I save annually?
• Which model is primarily employed in the mass appraisal process?
• Which symbol is used to represent a variate?
• What does a mortgage note represent?
• What is defined as the Federal Reserve's efforts to influence the level of economic activity?
• What is the mean rent of the monthly rents provided?
• What does the term "price of money" refer to?
• A categorical variable indicating rank order, such as small, medium, and large, is the definition of _________ variable.
• Which of the following monthly rents is the lowest in the provided data?
• When calculating the future value of an investment, which of the following is a necessary component?
• Which approach is commonly used in mass appraisal to analyze large data sets?
• A mortgage of $112,000 with a monthly payment of $727.09 has what length of original term?
• What is the effect of high variability in monthly rents on potential investments?
• What does "the unexplained or random aspect of a relationship among variables" refer to?
• What type of mortgage market is described as being created for the purchase and sale of existing mortgages?
• The measure that indicates the extent of variability in a dataset is known as?
• Which of the following is NOT a function of the Federal Reserve?
• What type of market is described as the interaction of buyers and sellers who trade long or intermediate-term money instruments?
• What is the primary purpose of the Federal Reserve?
• What is the main benefit of using mass appraisal systems?
• What term describes a variable that is manipulated or changed to observe its effect on another variable?
• What is the current bank balance with initial balance $3,554.90 after specified deposits and withdrawals?
• Which kind of data is typically used to compute median values?
• Price is considered which type of variable?
• The likelihood of an event occurring is measured by?
• What term refers to the risk of a borrower defaulting on a loan?
• Which term describes a measure of central tendency that represents the most frequently occurring value in a data set?
• How is the mode of the monthly rents best described?
• How often does compounding typically occur in calculations of annuities?
• A model that calculates value based on physical characteristics is known as?
• Which columns in the compound interest tables deal with future values?
• Which software was used to prepare all the charts and graphs in the course?
• In a situation where a mortgage holder incurs an interest of 6.8% on a $170,000 loan, which term is most likely?
• Given the following gross income multipliers: 5.9, 6.2, 5.7, 6.3, 6.4, 6.0, 5.5, 5.8, 6.3, 6.9, what is their range?
• What was the original amount of a mortgage with monthly payments of $1,179.92 at 6.8% for 25 years?
• If the holder of the third mortgage receives $5,000 after a property sale, what can be inferred about the total sale price in relation to the mortgage amounts?
• In what year was the Federal Deposit Insurance Corporation (FDIC) created?
• If you invest $75,000 at an interest rate of 5.2%, what will be the total amount available in 11 years?
• What calculation method involves both addition and subtraction before proceeding with division and multiplication?
• What was the original mortgage amount for a 25-year mortgage with monthly payments of $1,253.37 at a 6.25% interest rate?
• The gold and blue keys on an HP 12c calculator are classified as which type of keys?
• What is the amount of points paid by the seller when a property sold for $240,000 and a buyer financed the remaining balance after a $50,000 down payment?
• Who owns the Federal Reserve System?
• A property with a first mortgage of $170,000 and a second mortgage of $20,000 is sold for $195,000. How much does the holder of the third mortgage receive?
• How much do you need to invest annually, at 5.2%, to reach retirement savings of $130,988.87 in 11 years?
• Which federal agency was formed to provide funds to savings and loan institutions to facilitate affordable mortgages?
• What value represents the average of a given set of numbers?
• What does R-squared (r2) measure in statistics?
• Which characteristic would NOT affect the calculation of a mean rent?
• Which of the following can NOT be used for stepwise regression analysis?
• What is the result of the calculation (459.31 + 125.75) X (329.2 - 245.85) ÷ 23.4?
• The process of analyzing sets of property and market data to determine the specific parameters of a model is called?
• What term describes a result from a sample selection process where all members of a population have the same probability of being selected?
• What is the definition of a sample in statistics?
• What is the definition of the term that describes how much a variable's value differs from the mean or other benchmark?
• What type of lien is placed on a property after a previous lien has been recorded?
• What is the nature of a sample produced by an unscientific, non-random process?
• Which of the following best describes the median?
• How is money classified in economic terms?
• What relationship do compounding and discounting have?
• Which of the following would NOT be considered a weakness of AVMs?
• What are the monthly payments on a $950,000 mortgage at 4.8% interest for 15 years?
• What is the purpose of calculating the standard error of forecast?
• What is your current bank balance if your balance was $2,754.40 and you made several deposits and withdrawals as described?
• What is the standard deviation of the given 12 recent sales?
• In a normal distribution, approximately what percentage of observations fall within one standard deviation from the mean?
• Which statistical method examines the relationship between one or more independent variables and a dependent variable?
• Which term describes a loan that employs a payment schedule leading to a final lump sum payment?
• What is the median of the following monthly rents: $775, $800, $750, $825, $875, $850, $850, $750, $775, $850, $800, $800, $750, $900, $875?
• What is a fundamental aspect of performance assessment in statistical modeling?
• What is the term for the most frequently occurring value in a dataset?
• Which of the following is a disadvantage of relying solely on the mean rent?
• How many times does the rent $850 appear in the given data?
• Which of the following is NOT a type of error in statistical analysis?
• What is the sum of the differences between the mean and the variants for the provided land sales?
• Which of the following values represents the highest rent in the list?
• What is the mean of the following numbers: 235, 218, 266.5, 298, 222, 246, 264, 255, 274, 261, 277, 214, 256, 239?
• In a multiple linear regression equation, which variable is typically manipulated to see its effect on the dependent variable?
• Which of the following is used to analyze dispersion?
• All of the following are tools of the Federal Reserve, EXCEPT:
• Which entity was created first?
• For a homeowner's association to accumulate $50,000 in eight years at 3.75% interest, what will be the quarterly payment?
• If differences produce a total of 3.2 across 10 deviations, what is the average absolute deviation?
• What is the sum of the differences between the mean and the gross income multipliers?
• In statistical terms, what does a dependent variable indicate?
• A statistic indicating the proportion of the total variance in the dependent variable accounted for by the independent variable in a simple linear regression equation is known as?
• To estimate, calculate, or indicate in advance is the definition of what term?
• Which of the following is NOT a component of central tendency?
• What type of mortgage interest rate can vary over time based on an index?
• If I invest $75,000 at 5.2% interest for 11 years, how much will I have at retirement?
• Which federal agency was established to insure bank deposits?
• How is an adjustable-rate mortgage defined?
• A mathematical model used to develop values for each property within a group or universe of properties is referred to as?
• What is the main purpose of calculating the range in a dataset?
• When analyzing financial trends, which key performance metric indicates direction and momentum of an investment?
• Which of these measures of central tendency is most affected by extreme values?
• Which of the following is an insured loan?
• A mass appraisal model is generally based on which type of analysis?
• What is the definition of a theoretical distribution that is often approximated in real-world situations and is symmetrical and bell-shaped?
• In 1968, FNMA was divided into which two organizations?
• Which USPAP Standards address mass appraisals?