The formula to calculate the Average Price is:
\[ \text{Average Price} = \frac{\sum \text{Prices}}{\text{Number of Prices}} \]
Where:
The average price is calculated by summing all the prices and then dividing by the number of prices. It is a measure of the overall price performance across multiple items or transactions.
Consider an example where the prices are:
Using the formula to calculate the Average Price:
\[ \text{Average Price} = \frac{10 + 20 + 30 + 40 + 50}{5} = 30 \]
This means that the average price for this example is 30.