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Math Help - Averaging Percentages - correct way to average a ratio?

  1. #1
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    Averaging Percentages - correct way to average a ratio?

    What is the correct way to average a ratio? First average each variable, then calculate the ratio/percentage? Does it matter, what are the implications? Thanks
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  2. #2
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    Exclamation

    Rates don't usually get averaged. Without specific information, I'm afraid it's going to be difficult to give a specific answer. Sorry!
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  3. #3
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    Here is an example:

    variables:
    market price, price index, premium and realized price (index + premium)

    ratio:
    realized price as a % of market price

    so if you had monthly data for the variables - could you simply average the ratio through the time series? or do you need to average the variables before calculating the average ratio?
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  4. #4
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    ? anyone ?
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