[ELI5] Why average of 12 months growth percentile is not the same as sum of growth percetnile?

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Jan 2022 sales 100
Jan 2021 sales 50

Feb 2022 sales 150
Feb 2021 sales 90

Jan sales growth is 100%
Feb sales growth is 67%
Average growth **83%**

2022 sales total 250
2021 sales total 140
Percent growth is **79%**

Why do i feel stupid, ama grown ass man and i cnt figure it out

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4 Answers

Anonymous 0 Comments

Average = SUM / COUNT.

That is, you add the items you want to average, then divide by the total number of items.

The average of 100 and 67 is 83.5, because that’s 167/2.

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Percent change is DIFFERENCE / ORIGINAL.

When they calculated the percent growth, they did 250-140 = 110, that’s the “difference” for the numerator.

The “original” number is 140, because 2021 is before 2022.

So we do 110/140 = 0.786

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