What does the Absolute Deviation from the median ratio calculate?

The Absolute Deviation from the median ratio is an important measure used in appraisal to understand the degree of variability in property values or assessments. This ratio specifically calculates the total deviations of property assessments from the median assessment and divides this figure by the total number of samples.

When an appraiser calculates the Absolute Deviation from the median ratio, it highlights how far apart property assessments are from the middle point (the median) of the data set, thus providing insight into the overall consistency or dispersion of assessments.

This approach allows appraisers to gauge how well the assessments reflect the median value; a lower ratio indicates more centralized values around the median, while a higher ratio suggests greater variability. The method emphasizes the relevance of using the total number of samples in the calculation, as it enables a more accurate representation of the average deviation per assessment, which is crucial for reliable appraisal practices.