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7. Summary / Conclusion(Top)
Bringing all the pieces together provides us with:
Magic find increases the class ("item-color" or rarity) of the gear found.
Magic find will - on average - increase the number of possible affixes on items because this is directly related to the item class which in turn is affected by MF.
Magic find does not increase the number of items found (aka not effective on quantity).
Magic find does not increase the iLvl of the gear found.
The guaranteed rare drop from Nephalem Valor is an additional drop and it is possible to roll a legendary instead of rare.
The guaranteed rare drop from Nephalem Valor is applied to goblins as well.
The effect that MF has on increasing the number of possible affixes on rare items appears to be minimal and close to neglible for the standard elite drops. It does, however, appear to have a prominent effect on the NV rare drop.
Whether or not magic find affects the affix rolls themselves (aka not how many affixes you get, but how good the affix values turn out) is not investigated here, but there is no reason as of to suspect that magic find would increase the actual stat rolls. As of patch 1.05, Blizzard has also stated that these rolls will depend on the mLvl of the monster that the item dropped from.
The items drop in a predetermined sequence with each item dropped coming from a "slot". These slots have different chances to roll out a rare item, but only one of them (out of 4 gear slots without NV) seem to have the possibility to hit a NoDrop. The research mentioned here is very early, but is an important aspect if a complete picture of average drops is to be computed.
The items dropping from elite packs appear to be divided into "slots" that drop in a specific sequence. An elite pack has 4 of these slots and if 5xNV is effective a fifth is added. These slots have different base chances to roll out different item rarities: Gear slot 1 and 4 seem to be identical and have a base dropchance of around 10% for rare items, gear slot 2 and 3 seem to be related but have a very small chance to roll a rare item and in addition, gear slot 3 has a 50% chance to hit a NoDrop. Gear slot 5 (the NV slot) is always at least a 4-affix rare item.