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CABARRUS COUNTY 2012 APPRAISAL MANUAL <br />STATISTICS AND THE APPRAISAL PROCESS <br />INTRODUCTION <br />Statistics offer a way for the appraiser to qualify many of the heretofore qualitative decisions which he has been forced to use <br />in assigning values. In the process, he can learn more about how the data he uses behaves as well as how it relates to the <br />property valuation at fair market. <br />This brings us to the definition of that word "STATISTICS ". A statistical measure or "statistic" is a tool that helps you better <br />describe the characteristics of a set of data, such as the relationship of sale price to appraised value. <br />While useful, a far more technical and comprehensive definition is appropriate rather than the more simplistic one given above, <br />namely, "statistics is the theory and method of analyzing quantitative data obtained from samples of observations in order to <br />study and compare sources of variance of phenomena, to help make decisions to accept or reject hypothesized relations <br />between the phenomena, and to aid in making reliable inferences from empirical observation." The preceding, from <br />FOUNDATIONS OF BEHAVIORAL RESEARCH by Fred N. Kerlinger, states very well what statistics are, their usefulness, <br />and implications for our work. His book is highly recommended to all who wish to gain an understanding of many statistical <br />tools and the requisite knowledge of the "scientific method" of constructing cases for analysis. A somewhat less advanced text <br />for the beginner is AN INTRODUCTION TO BUSINESS AND ECONOMIC STATISTICS by John R. Stockton. <br />It is not our intent to try and present a programmed text to teach statistics but we will hopefully indicate which are useful where <br />and what they tell the property appraiser about his values. <br />Cabarrus County — 2012 Revaluation STATISTICS & THE 10-2 <br />APPRAISAL PROCESS 8/9/11 <br />Attachment number 11 <br />G -6 Page 297 <br />