What is the role of the Weighted Mean in sales ratio analysis?

The role of the Weighted Mean in sales ratio analysis is to provide a more accurate representation of overall sales by factoring in the distinct importance or 'weight' of each sale relative to its volume or significance. When assessing the value of a property or the performance of the real estate market, not all sales hold equal relevance; some may involve higher-value properties or a greater number of transactions within a certain segment.

The Weighted Mean takes these differences into consideration, allowing appraisers to understand the average sales ratio more effectively. It helps in smoothing out anomalies that might skew the analysis if a simple mean were used, leading to better-informed decisions regarding market trends and property valuations. This approach is crucial in mass appraisal scenarios where a comprehensive perspective on property sales is necessary to ensure fair assessments across various property types.