• P1-PX is the up to 5 different prices ($) • X is the number of different prices ## How to Calculate Average Price? The following example problems outline how to calculate Average Price. Example Problem #1: 1. First, determine the up to 5 different prices ($).
1. The up to 5 different prices ($) is given as: 6,10,5,8. 2. Next, determine the number of different prices. 1. The number of different prices is provided as: 4. 3. Finally, calculate the Average Price using the equation above: AP = (P1+P2+PX) / X The values given above are inserted into the equation below: AP = (6+10+5+8) / 4 = 7.25 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

up to 5 different prices (\$) = 9,11,20,30

number of different prices = 4

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

AP = (P1+P2+PX) / X = ?