What does Coefficient of Dispersion (COD) measure?

The Coefficient of Dispersion (COD) is a statistical measure used to assess the consistency or uniformity of property assessments within a specified area. It quantifies how closely assessments reflect the actual market values of properties. The COD evaluates the degree of variability or dispersion in ratios of assessed values to sale prices for a group of properties. A lower COD indicates more consistent assessments, while a higher COD signifies greater variability and potential inequities in property valuation.

The other options do not accurately capture the primary function of the COD. Market value fluctuations pertain to changes in property values over time, which is outside the scope of what COD specifically measures. General property conditions deal with physical or structural aspects of properties rather than assessment accuracy. Average sale prices over time can provide insight into market trends, but they do not directly address the consistency of individual property assessments as COD does. Therefore, the focus on assessment consistency makes the first choice the most appropriate answer in relation to what COD measures.