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Thread: AAV (ADP to R$) Formula

  1. #1
    Join Date
    Mar 2007

    Default AAV (ADP to R$) Formula

    Hi there,

    Somehwat irreleveant question due to the negligible change in the results, but I am anal and curious:

    - In the forecaster toolbox, the formula for AAV is listed as:
    AAV = 57.8 - 9.8 * ln (ADP)

    - In the March 25 Market Pulse article, the formula for AAV is noted as:
    AAV = 58.5 - 9.8 * ln (ADP)

    A) which is the most accurate / current?
    B) what is the source of this formula?

    thanks !


  2. #2
    Join Date
    May 2003
    Quincy, MA


    I wasn't aware that it had changed. I'll look into the discrepancy. Source is some original research performed here by Bill Macey citca 2010 or 2011.

  3. #3
    Join Date
    Jun 2003
    Detroit, MI


    This thread may also interest you.
    "My other son, he writes, he calls once in a while. Rick, he calls me on Mother's Day. The only time he's ever written was when he was in college and I made it clear if he didn't write he wouldn't get his allowance. He wanted the money, so he wrote. Sometimes I wish he still needed me for something." -- Alpha Barry, basketball star Rick Barry's mother, as quoted in Rick's 1972 autobiography

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