# Example 2 - Simple median calculated on discount percentage

When Simple Median is selected to determine the midpoint value of SSP and the SSP Band Calc On field is DISC_PCT, the SSP Analyzer will do the calculations in the following order to derive SSP%.

1. Calculate the median SSP%.

The Median SSP% is calculated based on the following formula:

Median SSP% = MEDIAN (Discount%)

The following table shows the discount percentage of each transaction line in this example.

 ITEM_NUM List Price Sell Price SSP Sell% (%List) Discount% HARDWARE_FV 7049 6785 96.25% 3.75% HARDWARE_FV 7059 6613 93.68% 6.32% HARDWARE_FV 7299 6506 89.14% 10.86% HARDWARE_FV 7061 6253 88.56% 11.44% HARDWARE_FV 7010 6123 87.35% 12.65% HARDWARE_FV 7372 6369 86.39% 13.61% HARDWARE_FV 7465 6090 81.58% 18.42% HARDWARE_FV 7344 5555 75.64% 24.36% HARDWARE_FV 7249 5343 73.71% 26.29% HARDWARE_FV 7572 5281 69.74% 30.26% HARDWARE_FV 7040 4771 67.77% 32.23% HARDWARE_FV 7041 4438 63.03% 36.97% HARDWARE_FV 7535 4741 62.92% 37.08% HARDWARE_FV 7587 4628 61.00% 39.00%

There are 14 transactions altogether. According to the simple median method, SSP Discount% equals the average discount percentage of 7th and 8th transactions.

Median SSP Discount% = (18.42% + 24.36%)/2 = 21.39%

2. Calculate the High Band SSP Discount% value.

The High Band SSP Discount% is derived based on the following formula:

High Band SSP Discount% = Median SSP Discount% + (Median SSP Discount% * High Band Percent/100)

The High Band Percent is specified by the High/Ceiling% field in the SSP Analyzer template or SSP batch. The value is 15 in this example.

High Band SSP Discount% = 21.39% + (21.39% * 15/100) = 24.60%

3. Calculate the Low Band SSP Discount% value.

The Low Band SSP Discount% is derived based on the following formula:

Low Band SSP Discount% = Median SSP Discount% - (Median SSP Discount% * Low Band Percent/100)

The Low Band Percent is specified by the Low/Floor% field, which 15 in this example.

Low Band SSP Discount% = 21.39% - (21.39% * 15/100) = 18.18%

4. Calculate the High Band SSP% and Low Band SSP% based on the following formulas:

High Band SSP% = 100 – Low Band Discount%

Low Band SSP% = 100 - High Band Discount%

4. Determine whether each transaction is compliant within the SSP% (or SSP Discount%) range.

If the Discount% of a transaction is within this SSP Discount% range (18.18% ~ 24.60%), this transaction is marked as compliant by the Analyzer; otherwise, the transaction is incompliant.

5. Calculate the compliance percentage.

The actual compliance percentage can be calculated by the following formula and then compared to the Compliance% value specified in the SSP Analyzer template or SSP batch.

Compliance Percentage = (Total number of compliant transactions/Total number of transactions) * 100