What does Average Deviation represent in a set of property assessment ratios?

Average Deviation is a statistical measure used to understand the variability or dispersion of values in a dataset. In the context of property assessment ratios, it specifically quantifies how much individual ratios differ from the median assessment ratio.

By calculating the average deviation, assessors can determine the consistency of property assessments in relation to the median. This helps in evaluating whether appraisals are uniform or if there are significant discrepancies among assessed values. A lower average deviation indicates that the individual assessment ratios are close to the median, signifying a more reliable and consistent assessment, while a higher average deviation reflects greater variability.

The other options do not accurately define Average Deviation. The first option describes the calculation of an average rather than dealing with deviations from the median. The second option speaks specifically to a situation involving properties sold above their assessed values, which does not focus on the deviation from the median. The last option refers to the median of absolute individual ratios, which is a different statistical measure and does not reflect how much individual ratios deviate from the median.