Multiplicative Model MA2 BPP book

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February 19, 2019 at 7:16 pm #505787
tovele
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Hi,

I´m analyzing an exemple 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.

Could someone help understing why they´re using a diffrente number?

Thanks is advance.
February 20, 2019 at 8:28 pm #505927
Ken Garrett
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The idea is that the sum of average corrections should should be 1 i.e. the corrections up and down should cancel out.

Here the average is 0.00225 too high. If that is deducted from each adjustment they will average out to 1
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