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.