Question

Calculate the coefficient of dispersion for the following five properties, describe what this statistic is and evaluate the performance of the property assessor based on the calculated statistic. (1 point) Parcel Assessed Value Market Value Assessment Ratio Median Absolute Assessment Dispersion Ratio 30,000 50,000 40,000 30,000 100,000 100,000 100,000 70,000 50.000 | 125,000

Answer 1

Assessment Median TA Market Value | Assessed Value median I Absolutel Assessment Dispersion Ratio Parcel Ratio 30,000 = 0.3 1,00,000 10.3-0.18 = 0.12 0.57 0.57 50,2CO = 0.2 1,00,000 1,00,000 I 70,ooo 1,00,000 0 2-0.18 = 0.02 30,000 50,000 40,000 30,000 40,000 = 0.571 0.57 0.57-0.18 70,0OO I= 0.39 30,000 50,000 0.57 50.000 1,00,000 1,25.000 0.0 10.57 0.6-0.18 0.42 0.8-0.18 = 0.62 100,000 1,25,000 Assessment Ratio Market value X Assessment Ratio - Assessed Value Assessment Ratio - Assessed Value Market value Applying formula (1) to each row in table Median Assessment Ratio 3 To calculate the median assessment ratio, all assessment 3 ratios are arranged in ascending order. 0.2, 0.3 /0.57% 0.6 0.8 The ratio in the middle is median assessment ratio , ine. 10:57 Absolute Diepersion * Coefficient of dispersion difference between ratio of each property & median ratio (ignosing the or are signs) divided by number of properties DY UU

Coefficient of dispersion 10.57-0.3) + |10.57-0-2) + (0.57-0.57) + 110:57-0.6)| + |10-57-0.8) 0.27+ 0.37 tot 0.03 + 0.23. = 0.18 parcel is the & coefficient Now; absolute deviation for each difference between assessment ratio of dispersion for each parcel. Absolute deviation = Assessment Ratio - Coefficient of Dispersion 0.18