Question 1132697: Textbook prices have a seasonal structure on Ebay. At the end of a term, the supply of used books outstrips demand, and the price is lower. Near the start of a term, many students are looking for books, and the price is higher. Suppose we can classify sales for a particular chemistry textbook into these two time periods and an "other" time period in the proportions shown below. We have also listed the average price the textbook sells for in each of these three time periods
Sales proportion--> Start of term: 0.45, End of term: 0.31, Other: 0.24
Average Price--> Start of term:$82.52, End of term:$49.12, Other: $65.23
For example, about 45% of Ebay auctions for this chemistry textbook occur at the start of the term and the books sell for an average of $82.52 during this time. Using the information above, compute the average price of the textbook over all seasons. (Do not put a dollar sign in your answer.)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Sales proportion--> Start of term: 0.45, End of term: 0.31, Other: 0.24
Average Price--> Start of term:$82.52, End of term:$49.12, Other: $65.23
For example, about 45% of Ebay auctions for this chemistry textbook occur at the start of the term and the books sell for an average of $82.52 during this time. Using the information above, compute the average price of the textbook over all seasons. (Do not put a dollar sign in your answer.)
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Weighted average price:: 82.52*0.45+49.12*0.31+65.23*0.24 = 68.02
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Cheers.
Stan H.
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