Have an idea?

Visit Sawtooth Software Feedback to share your ideas on how we can improve our products.

Average of utilities

Hi Bryan,

In this case once we generate averages for these 4 price points in excel.
The sum doesn't add up to zero.
Can we take these new utilities as it is for the simulator or we need to work on it further?

related to an answer for: CBC Utilities
asked Nov 28, 2013 by mal_saw2001 Bronze (875 points)

1 Answer

+2 votes
The original 5 price points average zero.  Once you take the average of four of them, but leave the 5th alone, they no longer sum to zero.  That's fine for your purposes (which you stated the client need in a previous thread) and you may use in market simulations.
answered Nov 28, 2013 by Bryan Orme Platinum Sawtooth Software, Inc. (153,180 points)