How is the Mean Assessment Ratio calculated?

The Mean Assessment Ratio is specifically calculated by dividing the total of the individual ratios by the number of sales. This method involves taking the assessed value of a property divided by its sale price to determine the assessment ratio for each property. By summing all of these individual assessment ratios and then dividing by the total number of sales, you derive the mean or average assessment ratio for that group. This provides a more accurate representation of how well assessed values align with market values across multiple properties, facilitating analysis of assessment equity within a jurisdiction.

In contrast, calculating the total of individual sales prices divided by the number of sales gives you the average sales price, which does not specifically measure assessment ratios. Taking the median of assessment ratios (option C) would only give a midpoint value and may not accurately represent the overall average, especially if the data is skewed. Calculating the average of assessed values (option D) also does not directly reflect the assessment ratio since it does not incorporate the sale price, which is crucial for determining how well the assessments correspond to market values.

Therefore, option B stands out as the most appropriate method for determining the Mean Assessment Ratio.