What does the term 'coefficients of variation' help to identify?

The term 'coefficients of variation' is a statistical measure that assists in determining the degree of variability or dispersion in a set of data relative to its mean. Within the context of mass appraisal, this metric is particularly valuable for assessing the uniformity among appraisal values.

When appraising properties, it is essential to ensure that the value estimates are consistent and equitable across similar properties. A lower coefficient of variation indicates higher uniformity in appraised values, meaning the values are closely clustered around the average. In contrast, a higher coefficient suggests greater disparity, which may raise concerns about fairness in the assessment process.

By analyzing the coefficients of variation, appraisers can identify areas where values may be too spread out, thus prompting further investigation into the appraisal methods or adjustments needed to achieve greater uniformity. This insight helps maintain the integrity of the appraisal process, ensuring that property assessments are just and aligned with market values.