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9 <br /> 1 Slide #8 <br /> Performance Standards <br /> How do we know what is correct and what needs review? <br /> Price-Related Differential (PRD) is used to identify categories outside of <br /> accepted standards when reviewing vertical equity. <br /> PRD is a statistical measure used to assess the equity of property <br /> appraisals, specifically examining whether higher-value properties are <br /> assessed at the same ratio to market value as lower-value properties. It <br /> helps determine if the appraisal process is biased towards or against <br /> certain property values. <br /> PRD does not identify an issue, but points to the possibility of an issue. <br /> ORANGE COUNTY <br /> 8 NORTH CAROLINA <br /> 2 <br /> 3 <br /> 4 Slide #9 <br /> Performance Measures (continued) <br /> • Median Sales Ratio and Coefficient of Dispersion (COD) are used when <br /> calculating PRD. <br /> • NC Department of Revenue provides the standard for Median Sales Ratio <br /> Standard for Median Sales Ratio: 90% - 110% <br /> • International Association of Assessing Officers (IAAO) provides generally <br /> accepted performace standards for COD and PRD <br /> Standard Ranges for COD: 5.0—25.0 <br /> �- Standard for PRD: 4.98— 1.03 <br /> s <br /> ORANGE COUNTY <br /> AROLINA5 <br /> 6 <br /> 7 <br />