IAAO Mass Appraising 2025 – 400 Free Practice Questions to Pass the Exam

The Automated Economic Production (AEP) method is least affected by incorrect data because it relies heavily on statistical models and algorithms that can often absorb and adjust for minor inaccuracies in the input data. This method uses large data sets and advanced statistical techniques to create a more generalized model that can accommodate variances in data quality. Consequently, small errors are less likely to significantly skew the overall outcome of the valuation.

The AEP method employs a systematic approach using averages, trends, and patterns rather than focusing solely on individual data points that might contain errors. As a result, this robust analytical framework helps mitigate the risk of incorrect data influencing the final valuation.

In contrast, other methods such as the Cost Approach, Automated Comparable Sales Analysis, and Market Rate Analysis (MRA) can be more sensitive to inaccuracies. The Cost Approach is fundamentally based on specific cost inputs, which, if miscalculated, can lead to significant over- or under-valuation. Automated Comparable Sales Analysis relies on comparing sales data, where inaccuracies can skew results dramatically. The MRA depends on market data trends; incorrect data can misrepresent current market conditions.

Thus, the AEP's reliance on broader data sets and statistical modeling allows it to effectively navigate issues arising from incorrect data,