Which of the following best describes the relationship assessed by the PRD?

The PRD, or Price-Related Differential, is a statistical measure that assesses the relationship between the assessed value of a property and its market value. Specifically, it evaluates how fairly properties are assessed relative to their market prices, highlighting any biases or discrepancies in the assessment process.

When assessed values differ significantly from market values, the PRD can indicate whether lower-priced properties are being valued more favorably compared to higher-priced properties or vice versa. A PRD of 1.0 would suggest that the assessed values are proportionate to market values, while values above or below 1.0 would indicate disparities in the assessment practices.

This measurement is essential for ensuring equity and uniformity in property tax assessment, making option A the best description of the relationship assessed by the PRD. In contrast, the other choices focus on different aspects of valuation and measurement, such as differences in central tendency or considerations of property type uniformity, and do not relate directly to the specific function that the PRD serves in evaluating assessed versus market values.