What does the coefficient of dispersion (COD) measure?

The coefficient of dispersion (COD) is a statistical measure used primarily in the assessment of property values to determine the uniformity and accuracy of assessments within a given area. It specifically measures the average absolute deviation of assessment ratios from the median assessment ratio, expressed as a percentage.

The formulation of the COD as Average Absolute Deviation divided by the Median, multiplied by 100, allows assessors to quantify the degree of variability in property assessments in relation to the central tendency (the median). This is important because it helps assessors identify how consistently properties are assessed compared to the ideal or normative values. A lower COD indicates that property assessments are more uniformly distributed around the median, suggesting a fairer assessment process.

The other choices do not accurately reflect the definition or calculation method for the COD, hence they don't provide the correct context for understanding this specific measure in property assessment practices.