Averages on graphs..

[Rakhi]

Guys, I am wondering if you can help me with this. How do you calculate averages in a graph? For example: I am looking at the below graph and I see that the lowest point is on 17th March early morning @ $2.67 and the highest point is at 18th March @ $ 2.97. So, will my Average be 2.82 (2.67+2.97/2)? But somehow I am feeling that it has to 2.76 because I am taking into consideration the volume of the graph and not exactly just the numbers. Am I going wrong? Is the formula for calculating averages same for numbers and graphs (Like the average for 4+3+5/3=4)?

Sorry if this is a second standard question

[vyomkeshsaxena]

betaji....itz calculated as change in y values of 1st and last point divided by the change in x values of the 1st and last point...

[Rakhi]

Originally Posted by vyomkeshsaxena

betaji....itz calculated as change in y values of 1st and last point divided by the change in x values of the 1st and last point...

Thanks Ji. Were you able to open the attachment? I couldnt now did you get a chance to take a look at that? I got confused which price is the actual average strike price.
So, according to your formula, calculation of average for numbers and graphs is same...

[vyomkeshsaxena]

letz take example from ur graph

say the value of stock is

13 march- 2.77
14-
15-
16-2.75
17-2.67
18-2.97
19-2.87
20-2.73

now say u want to compute average of ur scrip value from 16th to 18th march

so the value of Y here is 2.75+2.67+2.97 and X value is 3....y/x will be your avg

between 19 to 20th it will be

y value 2.87 +2.73 whole divided by x value 2

[Premi]

Originally Posted by Rakhi

Thanks Ji. Were you able to open the attachment? I couldnt now did you get a chance to take a look at that?..

whats the problem in opening this.

[vyomkeshsaxena]

Originally Posted by Rakhi

Thanks Ji. Were you able to open the attachment? I couldnt now did you get a chance to take a look at that? I got confused which price is the actual average strike price.
So, according to your formula, calculation of average for numbers and graphs is same...

for normal graphs yes...actually there are different type of graphs and according to the problem one needs to calculate averages and stuff....If you have ever prepared for CAT exams data interpretation section you will know what I am talking about....I got to know about them from my children who used to prepare for same

[Premi]

Originally Posted by vyomkeshsaxena

letz take example from ur graph

say the value of stock is

13 march- 2.77
14-
15-
16-2.75
17-2.67
18-2.97
19-2.87
20-2.73

now say u want to compute average of ur scrip value from 16th to 18th march

so the value of Y here is 2.75+2.67+2.97 and X value is 3....y/x will be your avg

between 19 to 20th it will be

y value 2.87 +2.73 whole divided by x value 2

Rakhi beta stop scratching that beautiful head..


do you want this in excel-macro .... is that what you want.... hayn?

[vyomkeshsaxena]

Originally Posted by Premi

whats the problem in opening this.

she might have opened the graph thru winzip or RAR from option 'download from current location' instead of saving it and opened it from there without extracting and saving and once she closed the file archiving utility..things would have got disappeared from image viewing utility

[Premi]

Originally Posted by vyomkeshsaxena

If you have ever prepared for CAT exams data sufficiency section

Good lord.... in same day ... so many things to remember ... gynae, editor, lactation.... CAT....mouse.... elephant.....eagle.... bee.....

[Rakhi]

Originally Posted by vyomkeshsaxena

for normal graphs yes...actually there are different type of graphs and according to the problem one needs to calculate averages and stuff....If you have ever prepared for CAT exams data interpretation section you will know what I am talking about....I got to know about them from my children who used to prepare for same

Ok, so now my average from 13th March through 20th is 2.79 (16.76/6) and hence if the stock price is anything below 2.79 (rightnow its 2.74) I should be able to buy the stock. Of course I should also be looking at a larger data and not just 6 days in a real situation....

Thanks Vyomiji and Premi It makes sense...

[vyomkeshsaxena]

Originally Posted by Premi

Good lord.... in same day ... so many things to remember ... gynae, editor, lactation.... CAT....mouse.... elephant.....eagle.... bee.....

iem happy that atleast therez someone who reads my posts

[Premi]

Originally Posted by Rakhi

Ok, so now my average from 13th March through 20th is 2.79 (16.76/6) and hence if the stock price is anything below 2.79 (rightnow its 2.74) I should be able to buy the stock. Of course I should also be looking at a larger data and not just 6 days in a real situation....

Thanks Vyomiji and Premi It makes sense...

look at the economy and Nasdaq too which way it is going. a litlle up/down in past few days and steady graph in last one year ( which is hard to find in any comp. profile nowadays ) doesnt mean that it will go up very soon. 2.79 average and current rate of 2.74 ..hmmmmm.

experts plz.....

[vyomkeshsaxena]

Originally Posted by Rakhi

Ok, so now my average from 13th March through 20th is 2.79 (16.76/6) and hence if the stock price is anything below 2.79 (rightnow its 2.74) I should be able to buy the stock. Of course I should also be looking at a larger data and not just 6 days in a real situation....

Thanks Vyomiji and Premi It makes sense...

No, since the graph is not linear i.e after 13th..straightaway they have jumped to 16th...u need to divide the space in between 13 to 16 into equal spaces accomodating 14th and 15th to vaguely get Y value on those days and add them all and then divide by 8 (13th thru 20th)...

[vyomkeshsaxena]

therez a easy way out too....but later

[Rakhi]

Originally Posted by Premi

look at the economy and Nasdaq too which way it is going. a litlle up/down in past few days and steady graph in last one year ( which is hard to find in any comp. profile nowadays ) doesnt mean that it will go up very soon. 2.79 average and current rate of 2.74 ..hmmmmm.

experts plz.....

Well, I am looking only at Toronto Stock Exchange at the moment....Ok lets see exactly at 1:00 EST. I am learning too and we might actually loose money on this one