L1 Q's

[palerider]

Which one is the one where when you calculate a percentage change, you use an average of beginning value and ending value for denominator as opposed to usual beginning value?

For example, when you calculate the percentage change from 1 to 2, it would be (2-1)/1=100%. But with above referenced method, it would be (2-1)/1.5=67%.

Was it HPR or one of the calculations from Econ? I can't remember.

Please help.

 

[GBC]

I think you are referring to Elasticity calculations from econ?

 

[HiroProtagonist]

Oh No.

 

[HiroProtagonist]

those aren't average denominators... those are totals

 

[GBC]

Good point. Im brain dead right now. Need a nap!

 

[palerider]

I think GBC is right. When you calculate price elasticity of demand, you divide % change in Q by % change in Price. Now, when you calculate those percentage changes, you have to use averages for denominator.

 

[Convex]

I second GBC. Definitely NOT HPR - yield is calculated relative to the initial investment.