Question

When it comes to interpreting the location quotient the primary question the analyst needs to ask

a.How does the local economy's location quotient compare to that of the US as a whole

b. is the location quotient greater than or less than 100

c. is the location quotient positive or negative

e.Is the location quotient greater than or less than 1

Which one of the following is NOT one of the requirements for a use to be a site's highest and best use?

a. the use must be financially feasible

b. the use must be legally permissible

c. the use must be physically possible

d. the use must be socially optimal

d. Is the location quotient greater than or less than 1?

Which one of the following properties would most likely have to rely primarily on the sales comparision approach for an estimate of its market value?

a. an aaprtment building

b.a ball park

c. a single family home

d. a shopping center

Answer 1

Answer 1)

Location Quotient

It is a way of denoting how much a local area is concentrated as compared to whole of the nation. This concentration can be based on a particular industry, occupation or demographic group.

Suppose, "M" is the amount of some of the measure in a particular area and the corresponding nation number is "N".

Then LQ = M/N

Hence, LQ = Local Industry concentration / National concentration of that industry

We can see that this will give us value less than or greater than 1.

Hence, correct option is e) Is the location quotient greater than or less than 1

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Answer 2) Site's highest and best use analysis is done to find the potential uses of a vacant land. In order to this analysis, we look at following 4 criteria:

1. Legally Permissible: It concerns the legal permission and restrictions on the site

2. Physically possible: It is the accesability, topography, shape and size of the site

3. Financially feasible: This is in terms on money

4. Most profitable: It is for commercial properties. So how much income you expect from starting a business on this site.

Hence, correct option is d) the use must be socially optimal

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Answer 3)

A sales comparison approach is used to compare a property with other properties with similat characteristics.

This approach takes into effect individual features/chararteristics to fnd overall property value. We must note that the properties must be comparable.

Option a) An apartment building: We can compare per unit price. There are similar number of rooms and space.

Option b) A ball park: Not comparable

Option c) A single family house: Not comparable

Option d) A shopping center. Not comprable because of difference in size.

hence correct option is a) An apartment building