Accuracy Indicator

Explanation

When issuing a model-based valuation, the model supplier must specify every model-based valuation appraisal value with an indication of the accuracy of the individual concerned taxation. A seven-point scale is used for accuracy, which is based on the probability distribution around the value. The following classification applies:

Classification

Accuracy Indicator
Definition
1
< 70% accuracy in 10% deviation
2
>= 70% accuracy in 10% deviation
3
>= 80% accuracy in 10% deviation
4
>= 90% accuracy in 10% deviation
5
>= 90% accuracy in 10% deviation and >= 80% accuracy in 5% deviation
6
>= 95% accuracy in 10% deviation
7
>= 95% accuracy in 10% deviation and >= 80% accuracy in 5% deviation
Depending on the purpose of the model-based valuation, it is determined which level of accuracy minimum is required.