Which one is correct?
-
Hey guys, Perhaps you all can help me answer a question that I have. I am curious what is the correct way, semantically, to distinguish between these two discounting methods. Starting price = p, first discount = f, second discount = s The first one is where you have a base price (p) and apply a discount (f) adn then apply the second discount to the resulting price. 1) (p*(1-f))(1-s) The second is where you sum the discounts together and use that as the discount from the base price. 2) (p*(1-(f+s)) is the first a cumulative discount and the second is an additive discount. I don't think this is the case and am curious if there exists a exact mathematical or business term to distinguish between the two. Thanks, Daniel Wilson
I don't know the correct/official way, but when I worked a Wal-Mart many moons ago we always discounted against the original price (at least that's what the stickers said). Hope that helps. Jeremy Falcon
-
Hey guys, Perhaps you all can help me answer a question that I have. I am curious what is the correct way, semantically, to distinguish between these two discounting methods. Starting price = p, first discount = f, second discount = s The first one is where you have a base price (p) and apply a discount (f) adn then apply the second discount to the resulting price. 1) (p*(1-f))(1-s) The second is where you sum the discounts together and use that as the discount from the base price. 2) (p*(1-(f+s)) is the first a cumulative discount and the second is an additive discount. I don't think this is the case and am curious if there exists a exact mathematical or business term to distinguish between the two. Thanks, Daniel Wilson
Funny that you should mention this - it was the topic of my class last week.:-D A series discount is usually expressed as 20/15/5 or some such on an invoice. To find the net cost, after all discounts, you use the product of the complements of the discount amounts: Net = (1 - d1)(1 - d2)...(1 - dn) x Retail. Ex: given 20/15/5, Net = (.8)(.85)(.95) x Retail = .65 x Retail or 65% of Retail To find the cumulative discount, take the complement of the product of complements, or: Total discount = 1 - (1 - d1)(1 - d2)...(1 - dn) Ex: given 20/15/5, Total discount = 1 - .65 = .35 or 35% The additive form isn't used in any business I know of. Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true... -
I don't know the correct/official way, but when I worked a Wal-Mart many moons ago we always discounted against the original price (at least that's what the stickers said). Hope that helps. Jeremy Falcon
Thanks for the response. I expect both are possible approaches used by different retailers but am unsure as to how to distinguish between the two verbally. For instance, when I say multiply or add two numbers you immediately know what i mean. I am looking for a similiar word to distinguish between these two process. Something like -- apply these two discounts to the base price.
-
Funny that you should mention this - it was the topic of my class last week.:-D A series discount is usually expressed as 20/15/5 or some such on an invoice. To find the net cost, after all discounts, you use the product of the complements of the discount amounts: Net = (1 - d1)(1 - d2)...(1 - dn) x Retail. Ex: given 20/15/5, Net = (.8)(.85)(.95) x Retail = .65 x Retail or 65% of Retail To find the cumulative discount, take the complement of the product of complements, or: Total discount = 1 - (1 - d1)(1 - d2)...(1 - dn) Ex: given 20/15/5, Total discount = 1 - .65 = .35 or 35% The additive form isn't used in any business I know of. Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true...Roger Wright wrote: The additive form isn't used in any business I know of. Never worked in the insurance business did you ? Some companies use the cumulative rule for policy discounts and some use additive. It drives us nuts ( we produce third party software to promuglate rates for agents using multiple companies ). And the worst part is - in most cases - the company IS department ( whcih we have to liason with ) has no frigging Idea how its done or if its the favored way - "its just always been done that way". Add to the mix that there are always discount caps that have to be entered into the mix Richard "The man that hath not music in himself and is not moved with concord of sweet sounds is fit for treasons, stratagems and spoils; Let no man trust him." Shakespeare
-
Funny that you should mention this - it was the topic of my class last week.:-D A series discount is usually expressed as 20/15/5 or some such on an invoice. To find the net cost, after all discounts, you use the product of the complements of the discount amounts: Net = (1 - d1)(1 - d2)...(1 - dn) x Retail. Ex: given 20/15/5, Net = (.8)(.85)(.95) x Retail = .65 x Retail or 65% of Retail To find the cumulative discount, take the complement of the product of complements, or: Total discount = 1 - (1 - d1)(1 - d2)...(1 - dn) Ex: given 20/15/5, Total discount = 1 - .65 = .35 or 35% The additive form isn't used in any business I know of. Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true...Thanks. I think you have definitely addressed one half of the puzzle perhaps both. Let me see if I understand you correctly. It seems to me as though you are referring to what I called number 1)p*f'*s' where f' is the complement of f adn the same for s, Ex: given 20/15/5 Net = Retail * .8 * .85 * .95 you are calling a series discounting method. You would refer to the second one Ex: given 20/15/5 Net = Retail * .6 as an additive discounting method
-
Roger Wright wrote: The additive form isn't used in any business I know of. Never worked in the insurance business did you ? Some companies use the cumulative rule for policy discounts and some use additive. It drives us nuts ( we produce third party software to promuglate rates for agents using multiple companies ). And the worst part is - in most cases - the company IS department ( whcih we have to liason with ) has no frigging Idea how its done or if its the favored way - "its just always been done that way". Add to the mix that there are always discount caps that have to be entered into the mix Richard "The man that hath not music in himself and is not moved with concord of sweet sounds is fit for treasons, stratagems and spoils; Let no man trust him." Shakespeare
So applying a cumulative discounts and applying additive discounts are valid terms for these two processes. Thanks, Daniel
-
Funny that you should mention this - it was the topic of my class last week.:-D A series discount is usually expressed as 20/15/5 or some such on an invoice. To find the net cost, after all discounts, you use the product of the complements of the discount amounts: Net = (1 - d1)(1 - d2)...(1 - dn) x Retail. Ex: given 20/15/5, Net = (.8)(.85)(.95) x Retail = .65 x Retail or 65% of Retail To find the cumulative discount, take the complement of the product of complements, or: Total discount = 1 - (1 - d1)(1 - d2)...(1 - dn) Ex: given 20/15/5, Total discount = 1 - .65 = .35 or 35% The additive form isn't used in any business I know of. Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true...Roger Wright wrote: The additive form isn't used in any business I know of. You've been staying away from the snake oil salesmen. :) Chris Meech We're more like a hobbiest in a Home Depot drooling at all the shiny power tools, rather than a craftsman that makes the chair to an exacting level of comfort by measuring the customer's butt. Marc Clifton VB is like a toolbox, in the hands of a craftsman, you can end up with some amazing stuff, but without the skills to use it right you end up with Homer Simpson's attempt at building a barbeque or his attempt at a Spice rack. Michael P. Butler
-
Roger Wright wrote: The additive form isn't used in any business I know of. Never worked in the insurance business did you ? Some companies use the cumulative rule for policy discounts and some use additive. It drives us nuts ( we produce third party software to promuglate rates for agents using multiple companies ). And the worst part is - in most cases - the company IS department ( whcih we have to liason with ) has no frigging Idea how its done or if its the favored way - "its just always been done that way". Add to the mix that there are always discount caps that have to be entered into the mix Richard "The man that hath not music in himself and is not moved with concord of sweet sounds is fit for treasons, stratagems and spoils; Let no man trust him." Shakespeare
Richard Stringer wrote: Never worked in the insurance business did you ? :laugh: No, I haven't, but insurance people live in their own little paranoid world, don't they?;) Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true... -
Thanks. I think you have definitely addressed one half of the puzzle perhaps both. Let me see if I understand you correctly. It seems to me as though you are referring to what I called number 1)p*f'*s' where f' is the complement of f adn the same for s, Ex: given 20/15/5 Net = Retail * .8 * .85 * .95 you are calling a series discounting method. You would refer to the second one Ex: given 20/15/5 Net = Retail * .6 as an additive discounting method
Daniel Wilson wrote: an additive discounting method I've never seen that method used before, but that would be a good term to describe it. :) Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true... -
Roger Wright wrote: The additive form isn't used in any business I know of. You've been staying away from the snake oil salesmen. :) Chris Meech We're more like a hobbiest in a Home Depot drooling at all the shiny power tools, rather than a craftsman that makes the chair to an exacting level of comfort by measuring the customer's butt. Marc Clifton VB is like a toolbox, in the hands of a craftsman, you can end up with some amazing stuff, but without the skills to use it right you end up with Homer Simpson's attempt at building a barbeque or his attempt at a Spice rack. Michael P. Butler
Apparently... Though we have so many snakes around here we just squeeze our own whenever we feel the need. Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true... -
So applying a cumulative discounts and applying additive discounts are valid terms for these two processes. Thanks, Daniel
Valid but different: For example I have a bas amount of 100.00 and 2 discounts of 5% and 10%. if I apply them in one manner I get 85.00 and in the other I get 85.5 Richard "The man that hath not music in himself and is not moved with concord of sweet sounds is fit for treasons, stratagems and spoils; Let no man trust him." Shakespeare
-
Funny that you should mention this - it was the topic of my class last week.:-D A series discount is usually expressed as 20/15/5 or some such on an invoice. To find the net cost, after all discounts, you use the product of the complements of the discount amounts: Net = (1 - d1)(1 - d2)...(1 - dn) x Retail. Ex: given 20/15/5, Net = (.8)(.85)(.95) x Retail = .65 x Retail or 65% of Retail To find the cumulative discount, take the complement of the product of complements, or: Total discount = 1 - (1 - d1)(1 - d2)...(1 - dn) Ex: given 20/15/5, Total discount = 1 - .65 = .35 or 35% The additive form isn't used in any business I know of. Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true...Roger Wright wrote: The additive form isn't used in any business I know of. I know some taxes are additive. I've worked with ARTS (http://www.nrf-arts.org/[^]) which supports both cumulative and additive taxations (including tax tables for different retail prices!) Calculating the tax is unambigous and straight forward. However, calculating the tax on an already taxed price (calculating backwards that is) is much more complicated. Additive and cumulative series makes for a knap sack problem which isn't easy to solve in a nonambigous way. I ended up having to use numerical analysis and find "x". Although, I think it was for the better because my algorithm is O(n log n) instead of O(nway too much) :) Anyhow, my point is; don't mix additive and cumulative series if you ever have to "unroll" the series. -- Unser Tanz ist so wild! Ein neuer böser Tanz. Alle gegen Alle!
-
Roger Wright wrote: The additive form isn't used in any business I know of. I know some taxes are additive. I've worked with ARTS (http://www.nrf-arts.org/[^]) which supports both cumulative and additive taxations (including tax tables for different retail prices!) Calculating the tax is unambigous and straight forward. However, calculating the tax on an already taxed price (calculating backwards that is) is much more complicated. Additive and cumulative series makes for a knap sack problem which isn't easy to solve in a nonambigous way. I ended up having to use numerical analysis and find "x". Although, I think it was for the better because my algorithm is O(n log n) instead of O(nway too much) :) Anyhow, my point is; don't mix additive and cumulative series if you ever have to "unroll" the series. -- Unser Tanz ist so wild! Ein neuer böser Tanz. Alle gegen Alle!
Jörgen Sigvardsson wrote: don't mix additive and cumulative series if you ever have to "unroll" the series. Amen to that! Heard in Bullhead City - "You haven't lost your girl -
you've just lost your turn..." [sigh] So true...