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
0
<50% accuracy in 20% deviation
1
< 85% accuracy in 20% deviation
2
>= 85% accuracy in 20% deviation
3
>= 85% accuracy in 20% deviation and >= 70% accuracy in 10% deviation
4
>= 85% accuracy in 20% deviation and >= 80% accuracy in 10% deviation
5
>= 85% accuracy in 20% deviation and >= 85% accuracy in 10% deviation and >= 60% accuracy in 5% deviation
6
>= 90% accuracy in 20% deviation and >= 90% accuracy in 10% deviation and >= 70% accuracy in 5% deviation
7
>= 95% accuracy in 20% deviation and >= 90% 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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