Re: growth rates not totalling



On 20 Sep 2006 10:26:38 -0700, "Native" <native_texan_03@xxxxxxxxx>
wrote:

New to this group so any help appreciated.

Here is my issue. I'm performing a growth rate calculation and then
applying that growth to project a full-year estimate. Everything looks
good. However, if I try to add up the parts, I get a different answer
than if I do the calculation against the whole. Any thoughts?

You can't expect inhomogeneous growth rates to
give the same results when aggregated from different
base Ns.


Example Data Below:

YTD = year to date

Neighborhood A
Year 1 105YTD 245Full-Year
Year 2 120 ?
YTD Growth = (120/105)-1 = 14%
Applying the 14% to 245 I get 280 for a full-year estimate.

Neighborhood B
Year 1 73YTD 197Full-Year
Year 2 112 ?
YTD Growth (112/73)-1=53%
Applying the 53% I get a full-year estimate of 302

TOTAL
Year 1 178YTD 442
Year 2 232 ?
YTD Growth (232/178)-1=30%
Applying the 30% to 442 I get 575.

My issue is 280 + 302 does not equal 575. Any thoughts?

I have trouble figuring where some of your numbers
come from, but I think this is an illustration of what you
have, with more extreme numbers.

Two growth curves -
1 - 10 - 100
25 - 26 - 27
Aggregated -
26 - 36 - 50

Hope this helps.

--
Rich Ulrich, wpilib@xxxxxxxx
http://www.pitt.edu/~wpilib/index.html
.



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