Appraiser I & II Practice Exam

Question: 1 / 400

What does a high Coefficient of Dispersion indicate about a set of property assessments?

Assessments are uniform

There is a lack of uniformity

A high Coefficient of Dispersion indicates a lack of uniformity among property assessments. The Coefficient of Dispersion (COD) is a statistical measure used to evaluate the consistency of property assessments relative to their market values. When the COD is elevated, it reveals that there is significant variability in the assessed values compared to the actual sale prices of the properties. This suggests that some properties may be over-assessed while others are under-assessed, resulting in disparities that undermine the goal of equitable property taxation.

In contrast, a lower COD would signify that assessments are more consistent or uniform, aligning closely with market values, leading to fairer property taxation. Thus, a high COD highlights essential issues in assessment practices, signaling the need for further investigation and adjustment to improve fairness and accuracy across the assessment rolls.

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Assessments are accurate

Property values are consistent

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