BUSI 444 – Marking Summary – Case Study Exam

Name: / Date:
Grader Signature:
BUSI 444 – Case Study Exam / Needs Improvement / Meets Expectations / Exceeds Expectations / Grade
Report Introduction & Structure
Transmittal, Contents, Appraisal Foundations / /10
Analysis of City, Neighbourhoods, Highest and Best Use
Report quality: organization (format/structure), quality of discussion and logic
Cost Model
Appropriate land valuation with supporting explanation / /20
Cost model calibration and initial testing
Data Analysis and Transformations
Comprehensive data analysis with sufficient support / /10
Transformations: comprehensive, correct, solid discussion
Variable Selection
Appropriate variables chosen, supporting explanation / /30
Appropriate criteria, multicollinearity considered
Market Model
Appropriate processes and supporting explanation / /10
Appropriate testing, treatment of outliers
Final Analysis & Conclusions
Final testing with supporting explanation / /20
Conclusions, clear and supported
TOTAL GRADE / /100
MEETS AIC/IAAO DEMONSTRATION REPORT REQUIREMENTS? / YES / NO
Explanation, if NO:
Note: for all sections other than Report Introduction and Structure, 40% of the marks are for the detailed explanation of the process. As a result, any section without adequate explanation will generally result in a failing grade for that section.

Report Introduction & Structure

BUSI 444 – Notes and Common Errors – Project 3 – Linear MRA—Income Properties

□Definition of appraisal problem: no definition of “fee simple”.

□Definition of appraisal problem: no definition of “market value”.

□Highest and best use analysis omitted or not directly related to the properties to be appraised.

□Highest and best use analysis of the properties to be appraised not specifically stated.

□Definition of the three approaches to value omitted or no reason given for not using all three approaches.

□No description of the three types of depreciation in the discussion of the Cost Approach.

□Other:

Cost Model

□Confused the requirements of a Cost model with those for an additive regression model.

□Incorrect characteristic adjustments.

□Error in the IMPRCNLD transformation.

□Did not test the Cost value against the market value levels indicated by the improvement residual.

□Other:

Data Analysis and Transformations

□Limited explanation of reasoning/process for transformations.

□Need to examine / transform the new variables.

□Other:

Variable Selection

□Did not test at least two groups of variables and include the main regression reports for each (i.e., Model Summary, ANOVA, and Coefficients—showing VIF/Tolerance statistics).

□Failed to include or discuss any of the new variables included in the database.

□In the modeling process, did not recognize that the homes with a full basement and those with only a crawlspace will exhibit a difference in value.

□Multicollinearity errors in groups for initial selection.

□Did not apply the criteria given in the course material to select variables from the final STEPWISE regression report (e.g., not-value analysis; inaccurate analysis of significance).

□Did not give appropriate consideration to appraisal or real estate factors for variables selected for or removed from the model.

□Selected final group for calibration without correcting multicollinearity.

□Other:

MarketModel

□All coefficients do not have the expected sign; the F and R2 values are low; the COV is high.

□Residuals outside of±3 standard deviations are not filtered out and the model recalibrated until no further outlier residuals are reported.

□Adjustments to ensure common level of assessment for all variables have not been done or are inappropriate (either statistically or from an assessment perspective).

□Inclusion of multicollinearity in the final model.

□ Other:

Final Analysis & Conclusions

□TEST database should only be used to test acceptable value level; remainder of tests should be done on the FULL database.

□Final testing should be done on the FULL database.

□Failure to make appropriate use of Mann-Whitney and Kruskal-Wallis tests for binary and discrete variables (you do not need to include all M-W or K-W tests, but you must provide summary totals of these for all binary and discrete variables—in and not-in the model). If any of these tests fail you must also include ratio statistics reports and take any action to correct).

□Incomplete testing: require complete graphic and statistical tests on land characteristics, binary, and discrete variables; as well as sufficient description of test purposes and accurate analysis of results for variables in and not-in the model.

□Did not carry out ratio statistics reports or take any actions to correct.

□Inadequate comparison of the results between the models and insufficient discussion with recommendations as to which is the better model and which should be used.

□Other: