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Calculating average. So why am I seeing difference in the value retrieved using below example?

5 Apples at $\$7.00 = 35$

10 Apples at $\$9.00= 90$

14 Apples at $\$5.00 = 70$

So calculating normally I paid $\$195.00$ for $29$ Apples, but if I calculate by average price $\$\frac{7+9+5}3 \times 29=\$203$

Why is there a $\$8$ difference? Thanks!

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  • $\begingroup$ You should calculate weighted average $\endgroup$ – Kostiantyn Lapchevskyi Aug 22 '16 at 23:55
  • $\begingroup$ Being specific, real average price is $\frac{7*5+9*10+5*14}{5+10+14}=6\frac{21}{29}\ne\frac{7+9+5}{3}=7$ $\endgroup$ – Kostiantyn Lapchevskyi Aug 22 '16 at 23:59
  • $\begingroup$ When you "calculate by average price" you are buying $9\frac{2}{3}$ apples at $\$ 7$, $9\frac{2}{3}$ apples at $\$ 9$, and $9\frac{2}{3}$ apples at $\$ 5$, $\endgroup$ – John Joy Aug 23 '16 at 16:09

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