Aggregation Math Example 3

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Example 3

easy
Monthly sales (\$thousands): Jan–Mar: 50, 60, 55; Apr–Jun: 80, 90, 85; Jul–Sep: 40, 35, 45. Calculate quarterly totals and annual total. What pattern does aggregation reveal?

Solution

  1. 1
    Q1 (Jan-Mar): 50+60+55=16550+60+55 = 165; Q2 (Apr-Jun): 80+90+85=25580+90+85 = 255; Q3 (Jul-Sep): 40+35+45=12040+35+45 = 120
  2. 2
    Annual total (9 months): 165+255+120=540165+255+120 = 540
  3. 3
    Pattern revealed by aggregation: Q2 is strongest quarter (255 vs 165 vs 120); clear seasonal pattern

Answer

Q1=165, Q2=255, Q3=120 (\$thousands). Q2 is the peak quarter; seasonal pattern is visible.
Aggregating to quarters reduces noise and reveals seasonal business patterns that are harder to see in monthly data. Aggregation at the right level reveals the appropriate pattern — too granular: noise; too aggregated: patterns disappear.

About Aggregation

Aggregation is the process of combining many individual data values into a single summary statistic such as a sum, mean, count, or proportion.

Learn more about Aggregation →

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