The use of direct conversion ratios and the selection of capitalization rates in residential income property appraisal

Two problems were considered in this study. The first was of selecting a capitalization rate under the traditional approach and the second was the use and accuracy of direct conversion ratios, particularly gross income multipliers. The purpose of the study was to resolve any inconsistencies and irrationalities which may exist in appraisal theory and, to the extent that direct conversion ratios are proven useful, to establish certain guidelines to facilitate their use. The various methods of selecting capitalization rates were discussed and, where justified, criticized. Then, theoretical aspects of gross income multipliers were considered. After a brief discussion of the data and relevant statistical concepts, extensive empirical analysis, using regression and correlation models as well as the average multiplier, followed. Assuming that the objective of a capitalization device is to predict a market value, the most probable selling price, it follows that capitalization rates should be market determined. It was found that the traditional methods of rate selection did not meet the criterion of market determination. The impossibilities of selecting rates from the market were stressed. The original advantages of gross income multipliers were simplicity and data availability. Despite the traditional criticisms, the statistical analysis demonstrated another advantage, accuracy. Stratification by basic structural type, location, number of suites and income per suite resulted in average percentage differences between actual and estimated values as low as three per cent. Other results were within acceptable error limitations. The findings with regard to capitalization rates illustrate that inconsistencies and irrationalities exist in appraisal theory. The use of the traditional methods of selecting capitalization rates should be terminated as they do not result in market determined rates. The findings with regard to gross income multipliers illustrate that they are capable of predicting values very accurately in many cases. Their use is to be encouraged where it can be shown that they are accurate.Business, Sauder School ofGraduat

Assessing System Performance of the Michigan Trunkline: Measures and Analytical Procedures for Planning and Operations

2020-0783The Moving Ahead for Progress in the 21st Century Act (MAP-21) required transportation agencies to use performance-based approaches, and there are federal guidelines and programs to help agencies develop performance management systems. For the performance management strategies to be effective, it is critical to establish performance measures that are practical and sensitive to planning and operational functions. Previously, the Michigan Department of Transportation (MDOT) provided the roadway inventory data in the Annual Sufficiency Report, which served as a planning tool and provided information that included the operational characteristics of the Michigan trunkline system. This report was retired in 2015. Given the lack of an up-to-date performance report, this study aims to identify and propose effective measures and analytical procedures for assessing the system performance of the Michigan trunkline system. To do so, first, the research team conducted a comprehensive review of literature regarding system planning performance management. Then, the research team explored the current state-of-the-practice by transportation agencies across the United States through a nationwide survey. Next, the research team performed a review of the MDOT current and historical practices regarding performance management. Subsequently, MDOT staff pertinent to performance management were interviewed to identify the current needs and gaps of the MDOT work areas in this regard. Then, the research team identified the potential system planning performance measures for the Michigan trunkline system, and a nationwide follow-up survey was carried out to determine the appropriate specifications (e.g., definition, calculation equations, thresholds, and targets) currently used by transportation agencies for the potential measures. Finally, the final recommendations and guidelines for the system planning performance management of the Michigan trunkline are provided. Based on the results of the study, total delay (and associated delay per mile for corridors), travel time index, planning time index, volume-to-capacity ratio, and level-of-service are the recommended measures for assessing the system performance of Michigan trunkline. The research team also presents the recommended specifications, data sources and tools to calculate the measures, as well as the reporting and communication methods for the selected measures are presented

Effects of Varying Epoch Lengths, Wear Time Algorithms, and Activity Cut-Points on Estimates of Child Sedentary Behavior and Physical Activity from Accelerometer Data

<div><p>Objective</p><p>To examine the effects of accelerometer epoch lengths, wear time (WT) algorithms, and activity cut-points on estimates of WT, sedentary behavior (SB), and physical activity (PA).</p><p>Methods</p><p>268 7–11 year-olds with BMI ≥ 85^th percentile for age and sex wore accelerometers on their right hips for 4–7 days. Data were processed and analyzed at epoch lengths of 1-, 5-, 10-, 15-, 30-, and 60-seconds. For each epoch length, WT minutes/day was determined using three common WT algorithms, and minutes/day and percent time spent in SB, light (LPA), moderate (MPA), and vigorous (VPA) PA were determined using five common activity cut-points. ANOVA tested differences in WT, SB, LPA, MPA, VPA, and MVPA when using the different epoch lengths, WT algorithms, and activity cut-points.</p><p>Results</p><p>WT minutes/day varied significantly by epoch length when using the NHANES WT algorithm (p < .0001), but did not vary significantly by epoch length when using the ≥ 20 minute consecutive zero or Choi WT algorithms. Minutes/day and percent time spent in SB, LPA, MPA, VPA, and MVPA varied significantly by epoch length for all sets of activity cut-points tested with all three WT algorithms (all p < .0001). Across all epoch lengths, minutes/day and percent time spent in SB, LPA, MPA, VPA, and MVPA also varied significantly across all sets of activity cut-points with all three WT algorithms (all p < .0001).</p><p>Conclusions</p><p>The common practice of converting WT algorithms and activity cut-point definitions to match different epoch lengths may introduce significant errors. Estimates of SB and PA from studies that process and analyze data using different epoch lengths, WT algorithms, and/or activity cut-points are not comparable, potentially leading to very different results, interpretations, and conclusions, misleading research and public policy.</p></div

Minutes/day spent in SB and PA by activity cut-point using the Choi WT algorithm.

<p>The epoch length originally used to validate the activity cut-points were used to determine estimates of SB and PA.</p