What is measured to determine the quality of assessments using the Coefficient of Dispersion?

The Coefficient of Dispersion (COD) is a statistical measure used to evaluate the quality of assessments by quantifying the uniformity of property assessments compared to their market values. Specifically, it focuses on the deviation of individual property assessment ratios from the median ratio of a group of properties. This measure helps assessors understand how consistently assessments are applied across different properties; a low COD indicates that property ratios are close to the median, suggesting a high level of uniformity and fairness, while a high COD indicates more variability and potential problems with assessment equity.

In contrast, measuring total income generated from properties does not directly relate to the assessment quality or uniformity. The average deviation compared to market rates may provide insights into pricing but does not focus specifically on the distribution of assessment ratios. Lastly, consistent sales prices across similar properties is an important factor for market analysis but is not a direct measure of how well the assessments correspond with property values in the context of the COD. Thus, the appropriate choice for measuring the quality of assessments using the Coefficient of Dispersion is indeed centered on the deviation of individual property ratios from the median.