How is market value determined?
Stack-n-Sell uses real data to create a "market value" that is a reasonable reflection of what sellers are actually being paid for items that have sold.
In more technical terms, the "market value" is determined using "Simple" or "Single" exponential smoothing. This type of forecasting is particularly useful over a standard or moving average because it favors more recent sales data over historical yet takes into account all the collected data. We use the method of least squares to determine a value for alpha which best fits the data set and smooths out the prediction to one that most reasonably represents the current value. There are lots of published papers and mathematical journal publications on "exponential smoothing" how it works and why it is the preferred method for determining fair market value if you would like to learn more.
For items that have not sold in the marketplace yet, or with minimal secondary market data we take into account primary market data, including the price the user(s) paid for the item to aid in determining its "market value".
In more technical terms, the "market value" is determined using "Simple" or "Single" exponential smoothing. This type of forecasting is particularly useful over a standard or moving average because it favors more recent sales data over historical yet takes into account all the collected data. We use the method of least squares to determine a value for alpha which best fits the data set and smooths out the prediction to one that most reasonably represents the current value. There are lots of published papers and mathematical journal publications on "exponential smoothing" how it works and why it is the preferred method for determining fair market value if you would like to learn more.
For items that have not sold in the marketplace yet, or with minimal secondary market data we take into account primary market data, including the price the user(s) paid for the item to aid in determining its "market value".
Updated on: 21/01/2023
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