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MA2 Managing Costs and Finance Forums › Multiplicative Model MA2 BPP book

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › MA2 Managing Costs and Finance Forums › Multiplicative Model MA2 BPP book

  • This topic has 2 replies, 2 voices, and was last updated 6 years ago by tovele.
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    Posts
  • February 20, 2019 at 7:02 am #505838
    tovele
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    Hi,

    I´m analyzing an example where the average q1=0.975, q2=1.3035,q3=0.637 and q4= 1.0935 the total is 4.009/4=1.00225 but they use 0.00225 average to be deducted.

    Note: Instead of summing to zero, as with addictive approach, the averages should sum(in this case) 4.0,1.0 for each of the four quarters.

    Could someone help to understand why they´re using a different number?

    Thanks is advance.

    February 20, 2019 at 8:31 pm #505928
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10594
    • ☆☆☆☆☆

    The avreage should not be 4. That’s the total. The average should be 1.

    February 22, 2019 at 9:19 am #506164
    tovele
    Member
    • Topics: 2
    • Replies: 1
    • ☆

    The sum of all quarters is 4.009 which will be divided by 4 to get the average which is 1.00225.

    So my question is if the average is 1.00225 why they are using only 0.00225?

    Note: Instead of summing to zero, as with addictive approach, the averages should sum(in this case) 4.0,1.0 for each of the four quarters. This is confusing me.

    Thanks in advance

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    Posts
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