Which of the following formulas best represents the calculation of the COD?

The coefficient of dispersion (COD) is a measure used in appraisal to assess the uniformity or consistency of property assessments compared to market values. It is calculated by dividing the mean deviation of assessments from the median assessment by the median assessment. This formula effectively reflects how much individual assessments deviate from the central tendency represented by the median, giving insight into the equality of assessments.

Using the mean deviation allows appraisers to account for the average absolute deviation of individual property assessments from the median, which helps identify inconsistencies or disparities in property assessments. By employing the median as a reference point, the COD offers a clear view of how assessments compare to typical market prices, making it a valuable tool for assessing the fairness of property taxation.

The other formulas do not represent the COD accurately. For instance, the first option combines unrelated metrics, while the third and fourth do not align with the standard COD calculation method. Thus, the inclusion of mean deviation and median in the correct formula captures the essence of COD as it pertains to the appraisal process.