BUSI 443, Asg 9

UBC Real Estate Division 2018 BUSI 443: REAL PROPERTY ASSESSMENT Answer Guide 9 CHAPTER 10: Quality Management Marks: 1 mark per question. 1. Answer: 4 Quality is a measure of excellence or state of being free from deficiencies. Quality Assurance is doing the right things (Option 1), Quality Control is doing things right (Option 2), and Quality Management is the achievement of the prescribed level of quality through the consistent adherence to well-designed policy, practices and standards (Option 3). 2. Answer: 1 The statistics listed are common and useful measures to provide feedback on the reliability of individual variables ( t -statistic) and the valuation model in its entirety (t he coefficient of determination (R 2 ), the standard error of the estimate (SEE), and the coefficient of variation (COV)). 3. Answer: 4 Data quality refers to all three: accuracy, completeness, and consistency. 4. Answer: 3 At the highest level, quality plans are aligned with strategic priorities and at lower levels must be embedded in operations. Option (1) is part of assuring data quality. Option (2) is a continuum on which an organization might find itself when measuring its maturity in a certain functional area such as quality management. Option (4) is an element of quality management. 5. Answer: 2 The aim of quality assurance is to create confidence that the quality plan is implemented and controls are working as intended. Tools and feedback are part of quality assurance, but not it purpose. 6. Answer: 1 The challenge with completing only a portion of a taxing jurisdiction is the potential for different (inequitable) treatment of some sub-group of properties. In multi-jurisdiction assessment agencies, the ideal would be to ensure the entire jurisdiction is updated during the assessment cycle. 7. Answer: 1 Greater computing power and automation, effectively employed should provide improved quality control through automatic error reporting and other measures. 8. Answer: 4 Option (1) is true: ratio studies can be augmented by graphs and diagrams to highlight results. Frequency distributions, histograms, polygons and scatter plots are all examples of helpful data displays that can be used to support a ratio study report. These graphics can help to describe the data itself and to find bias or patterns that could result in misleading results. They can also help analysts and others to better understanding the inferences made about the population and the degree of confidence that can be placed in the results. Option (3) is true: adding independent appraisals or property data samples into the sales ratio study or separate (complementary) studies can help improve the validity and meaningfulness of the reporting. Where there is an inadequate number of sales and expanding time or geographic parameters or including other stratifications is not practical, independent appraisals can be used. Option (2) would be undertaken based on the results of a ratio statistic test.