Computing the State Standard Quality Update Factor - Hughes County, SD
The unadjusted 2008 update factor is calculated as the ratio of the 2008 ACS standard quality median rent
to the 2007 or 2006 ACS standard quality median rent for South Dakota. Following calculation of the unadjusted update factor, HUD
determines if the change in the standard quality rent between the 2007 or 2006 and 2008 surveys is statistically significant. If the change is not
statistically significant, HUD sets the update factor to 1.0. The 2008 unadjusted update factor of 1.0444 is:
= 2008 ACS Standard Quality Public Housing Adjusted Median Rent / 2006 ACS Standard Quality Public Housing Adjusted Median Rent
= $611
/
$585
= 1.0444
Similar to last year, for Final FY 2011 FMRs, HUD tests to see if the change in ACS survey results from 2006 to 2008 is statistically significant.
This is done by computing a "Z-Score". If the Z-Score value is greater than 1.645 the 2 survey results are considered to statistically different from each other.
If the Z-Score is less than 1.645 then the change as measured by the two surveys is considered to be statistically insignificant and the change factor is set to 1.0
The Z-Score is calculated as:
| Z | = | ABS(EST08 - EST06)
 (SE082 + SE062) |
|
Where EST06 is the 2006 ACS Survey Estimate, EST08 is the 2008 ACS Survey Estimate, SE06 is the standard error of the 2006 ACS Survey Estimate and SE08 is the
standard error of the 2008 ACS Survey Estimate.
| Z | = | ABS(611 - 585)
(11.5502 + 6.0792) |
|
| Z | = | 26
(133.406 + 36.955) |
|
| Z | = | 26
170.361 |
|
| Z | = | 26
13.052 |
|
Z = 1.992
As can be seen from the calculation above the z-score is greater than 1.645. Therefore the 2006 to
2008 update factor is 1.0444.
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[Error in file 2011_state_sq_update_factor.odn line 299]
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