How can the Coefficient of Dispersion be computed?

The Coefficient of Dispersion (COD) is a measure used to assess the uniformity of property assessments relative to market values. It is calculated by comparing the assessed values of properties to their market values, which helps evaluate the fairness and equity of the assessment process.

The correct answer involves using more than one measure of central tendency. This is important because the COD takes into account the variability and distribution of assessments across a sample. By using multiple measures like mean, median, and mode, it captures a more comprehensive picture of how property assessments align with actual market values. Each measure provides unique insights: the mean offers an average, the median indicates the middle value, and the mode shows the most frequently occurring value. Together, these measures help in providing a robust analysis of the dispersion and compliance of property assessments.

Relying solely on a single measure like mode, median, or range would not adequately reflect the variations in the data, which is crucial for accurately computing the Coefficient of Dispersion and evaluating assessment equity. Thus, utilizing multiple measures ensures a more accurate calculation that considers different aspects of the distribution of property values.