Average vs divided sum of totals

-Jeremy

New member
Joined
Sep 20, 2017
Messages
2
Myself and a colleague work in housing viability studies, and one of the things we've disagreed on is finding the average sales values of a number of properties. The sales value is found by dividing the price it was sold for by the gross internal floor area.

I think the average is found by finding the average of all the sales values, but he thinks it should be found by dividing the total price for all the properties by the total floor area.

e.g. For this table:

Price (£)
GIFA (m²)Sales value (£/m²)
280,000674179
280,000
65.14301
290,00072.14022
295,000753867

In this case my average would be 4092.25 and his 4101.003.

He thinks his average is closer to the "true average" because it ignores outliers more, but I've experimented with this and haven't seen it to be true.

Is there weight to what he's saying? Are there ways of finding an average (besides finding the median) that don't consider outliers?
 

tkhunny

Moderator
Staff member
Joined
Apr 12, 2005
Messages
9,914
Batting Average

Player #1: 0.305
Player #2: 0.215

What is the Batting Average for the Pair?

Trust me on this.
 

-Jeremy

New member
Joined
Sep 20, 2017
Messages
2
That's different though. Player 1 and 2 represent a category of results. On that occasion, the average would be found using their individual results tallied together. On the other hand, sales values already only represent one dwelling each.
 
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