Let's say you wanted to calculate, for example, the average (i.e. mean) cost per day for a hotel to accommodate a tourist. If only aggregate cost data is available, is dividing the average cumulative cost for one person's stay by the average person's duration of stay an acceptable method? Would using the median cost and median duration of stay be better? Worse? The same?

luxlivinglm

luxlivinglm

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2022-08-20

Let's say you wanted to calculate, for example, the average (i.e. mean) cost per day for a hotel to accommodate a tourist. If only aggregate cost data is available, is dividing the average cumulative cost for one person's stay by the average person's duration of stay an acceptable method? Would using the median cost and median duration of stay be better? Worse? The same?

Answer & Explanation

Helena Ward

Helena Ward

Beginner2022-08-21Added 11 answers

With the average,
C ¯ D ¯ = 1 n i C i 1 n i D i = i C i i D i .

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