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July 21st, 2013, 11:36 PM  #1 
Newbie Joined: Jul 2013 Posts: 5 Thanks: 0  Average of Range
Which one is correct? The following array shows the time and cost (minimum and maximum) in forming one unit of item. Calculate the average total cost. Time Cost Total Cost (Time * Cost) Minimum 2 50 100 Maximum 6 80 480 Average Total Benefit = ((2+6)/2*(50+80)/2) (1) = 260 First take average of maximum and minimum time and of maximum and minimum cost, then use the average time and average cost to arrive at average total cost. Average Total Benefit = (100+480) / 2 (2) = 290 First calculate the minimum total cost (minimum time multiplied by minimum cost) and the maximum total cost (maximum time multiplied by maximum cost), then use the two results to arrive at average total benefit Question: Which of the above methods is the better estimate of the average total cost of forming one item? And why? 
August 2nd, 2013, 02:04 PM  #2  
Math Team Joined: Sep 2007 Posts: 2,409 Thanks: 6  Re: Average of Range Quote:
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