A sample’s median assessment-to-sale ratio is 0.95. What does that statistic alone describe?
Correct Answer
B) A central observed assessment-to-sale ratio of 95%
A median assessment-to-sale ratio of 0.95 describes a central sample ratio equal to 95% of the sale-price denominator. It does not state that every parcel is assessed at that fraction or that mean assessment is 5% below market value. Spread, completeness and legal assessment targets require separate evidence; COD cannot be inferred from the median alone.
Why This Is the Correct Answer
Option B is correct because a median ratio of 0.95 describes a central observed assessment-to-sale ratio of 95%. The median divides the sample into two equal parts, so half the ratios are at or below 0.95 and half at or above. Spread, completeness and legal assessment targets require separate evidence.
Why the Other Options Are Wrong
Option A: All assessment ratios are 95% uniform
Option A claims all assessment ratios are 95% uniform, but the median measures central tendency, not uniformity. Individual ratios can vary widely around a median of 0.95.
Option C: That exactly 95% of the parcels were assessed this year
Option C says exactly 95% of the parcels were assessed this year, which confuses a ratio level with a completion rate. The median ratio does not describe how many parcels were assessed.
Option D: A coefficient of dispersion equal to 5
Option D states a coefficient of dispersion equal to 5, but the COD cannot be inferred from the median alone. COD requires the deviations of individual ratios from the median.
Median is level, not spread
The median tells you where the middle sits; it tells you nothing about how spread out the ratios are.
How to use: Use this when a question asks what a single median ratio reveals.
Exam Tip
Separate level measures (median, mean) from uniformity measures (COD, PRD); a level statistic cannot answer a uniformity question.
Common Mistakes to Avoid
- -Reading a median ratio as a measure of uniformity
- -Inferring the COD from the median
- -Assuming every parcel is assessed at the median ratio
Concept Deep Dive
Analysis
This question tests what a median assessment-to-sale ratio alone tells you. A median of 0.95 describes the central observed ratio in the sample, meaning the middle sale's assessment is 95% of its sale price. It says nothing by itself about uniformity, completeness or the COD.
Background Knowledge
In ratio studies, the median ratio is a primary measure of appraisal level, while the COD measures uniformity. The two are separate statistics computed for different purposes. A jurisdiction can have a median near target but poor uniformity, or the reverse.
Real-World Application
A county reports a median assessment ratio of 0.95. A taxpayer advocate notes that this shows typical assessment level but asks for the COD to judge whether some properties are assessed far above or below that level.
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