suppose i want to sell a widget and i want to know the current actual price in market. So i go out and ask 10 other sellers. And suppose i get the following
1, 100, 105, 95, 110, 100, 90, 105, 95, 1200
If i calculate the average of this, i'll end up with something around 200 which is NOT the actual value of the widget. But instead, as from the above example, the actual price should be 100
I also thought about median, but median also can mess up the things ..
So i want to ask ppl trained in economics, What is the best way to calculate (determine) the actual price ? what is the formula for it and how is the method called ?
Thanks
2007-12-18
09:54:59
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3 answers
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asked by
Zettag
2