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.
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