Prove relationship between average and marginal value

In summary: So it works. In summary, we have shown that the mean of the new set, with (n+1) members, is between X and Y, regardless of the values of X and Y.
  • #1
Bipolarity
776
2
Consider a set of n numbers, and let their arithmetic mean be X.
Suppose a new number Y, is added to the set. Prove that the mean of the new set, with (n+1) members, is between X and Y.

I've been trying to prove this the past few minutes, but I think I'm at a dead end. It's a problem that caught my attention during my reading statistics. Any ideas?

BiP
 
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  • #2
Bipolarity said:
Consider a set of n numbers, and let their arithmetic mean be X.
Suppose a new number Y, is added to the set. Prove that the mean of the new set, with (n+1) members, is between X and Y.

I've been trying to prove this the past few minutes, but I think I'm at a dead end. It's a problem that caught my attention during my reading statistics. Any ideas?

BiP

Hey Bipolarity.

For first mean we have X = Sum/n. Our new one is given by New_Mean = (Sum+Y)/(n+1) = Sum/(n+1) + Y/(n+1). Now (n+1)/n x Sum/(n+1) = X which implies Xn/(n+1) = Sum(n+1) which implies New_Mean = Xn/(n+1) + Y/(n+1)

So we are comparing X and Xn/(n+1) + Y/(n+1) or X and [1/(n+1)][nX + Y].

Let's assume that our constraints given by the answer are right (i.e the RHS is bound by X and Y inclusive). We will do this to show whether a contradiction occurs either in part or in whole.

I'll let you do this in another post (not a good idea to always post the whole answer!).
 
  • #3
The expression is (nX+Y)/(n+1)=A
Assume Y < X, then A < (nX+X)/(n+1) = X, A > (nY + Y)/(n+1) = Y.

Similarly for Y > X.
 

What is the difference between average and marginal value?

Average value is the total value divided by the number of units. It represents the overall performance or outcome. Marginal value, on the other hand, is the change in value for each additional unit. It represents the incremental impact of adding one more unit.

How do you calculate average value?

To calculate average value, you divide the total value by the number of units. For example, if you have a total value of $500 and 10 units, the average value would be $50 ($500/10 = $50).

How do you calculate marginal value?

Marginal value is calculated by taking the change in total value and dividing it by the change in the number of units. For example, if the total value increased by $100 when you added one more unit, the marginal value would be $100 (change in total value/change in number of units = $100).

What is the relationship between average and marginal value?

The relationship between average and marginal value is that the marginal value is the rate of change of the average value. In other words, the change in average value is equal to the marginal value times the change in the number of units.

Why is it important to understand the relationship between average and marginal value?

Understanding the relationship between average and marginal value is important because it helps businesses make informed decisions. By knowing the marginal value of each additional unit, businesses can determine the optimal quantity to produce or purchase in order to maximize profits. It also helps in pricing decisions, as businesses can set prices that reflect the marginal value of their products or services.

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