In the context of mean deviation, what does the term 'average' refer to?

Study for the Appraiser I and II Exam. Prepare with flashcards and multiple choice questions, each question offers hints and explanations. Get ready for your exam!

In the context of mean deviation, the term 'average' specifically refers to the total of all deviations divided by the count. Mean deviation is a statistical measure that calculates the average distance between each data point and the mean of the dataset. To find this, all individual deviations from the mean are summed, and then this total is divided by the number of observations in the dataset. This provides a measure of variability in a clear and quantifiable manner.

The other options represent different concepts related to data but do not align with the definition of 'average' in the context of mean deviation. The total sum of property values pertains to an aggregate measure, not an average. The typical sales price in a neighborhood may represent another form of average (like the mean or median), but it does not relate to calculating mean deviation. Lastly, the most frequently occurring assessment value refers to the mode, which is different from calculating the average for mean deviation. Thus, the correct interpretation of 'average' in this statistical context is the total of all deviations divided by the count.

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