taking an average of an average
Nowâ¦letâs say order volume in NY is 10 orders, and volume in PA is 2 orders. Taking the average of the two averages would give us $75 as the overall average cost. (($100+$50 = $150)/2) = $75 However, if we take volume into account, as we should, the average is $91.67.10 NY orders at $100 = $1,000 + 2 PA orders at $50 = $100, for a total cost of $1,100, divided by all 12 orders = $91.67.hese numbers rarely match because taking an average of averages is wrong. The reason an average of averages is wrong is that it doesnât take into account how many units went into each average. For example: Letâs say we only have orders in 2 states, New York and Pennsylvania.