Section 50IAC27-5-3. Sample representativeness

   (a) A ratio study or a value calibration analysis study is valid to the extent that the sample is sufficiently representative of the population. A study sample is representative when the distribution of ratios of properties in the sample reflects the distribution of ratios of properties in the population.

  (b) To be a representative sample, the sample must proportionally reflect major property characteristics, for example, property class, type, location, size, and age, present in the population of sold and unsold properties. The county assessor must incorporate a quality control program to ensure that sold and unsold parcels are assessed at the same level. See IAAO Standard on Ratio Studies, Appendix D (July 2007), as incorporated by reference in 50 IAC 27-1-4.

  (c) A study sample with fewer than five (5) sales shall not be used due its exceptionally poor reliability. (Department of Local Government Finance; 50 IAC 27-5-3; filed Apr 8, 2010, 1:45 p.m.: 20100505-IR-050090502FRA)