A r c h i v e d  I n f o r m a t i o n


APPENDIX A

Examples of Aggregate Discount-Rate Calculations for Central Billing

Example 1:

Comparison of Simple, Population-Weighted and Service-Weighted Averages When Services Unevenly Distributed by Population

Enrollment Free &
Reduced
Lunch
Poverty
Rate
Cost
Category
Discount
Rate
Pop.
Weight
Factor
Pop.
Weighted
Discount
Rate
Computers Service
Weight
Factor
Service
Discount
Rate
School 1 1000 950 95% Urban 90% 0.31 0.28 100 0.29 0.26
School 2 750 75 10% Urban 40% 0.23 0.09 150 0.43 0.17
School 3 500 300 60% Urban 80% 0.15 0.12 50 0.14 0.11
School 4 800 400 50% Urban 80% 0.25 0.20 40 0.11 0.09
School 5 200 180 90% Rural 90% 0.06 0.06 10 0.03 0.03
Total 3250 1905 -- -- -- 1.00 -- 350 1.00 --
Simple Average -- -- -- -- 76% -- -- -- -- --
Pop. Weighted Average -- -- -- -- -- -- 74% -- -- 66%
Rounded Average -- -- -- -- 75% -- 75% -- -- 65%


Example 2:

Area-Wide Calculation When Services Evenly Distributed by Population

Enrollment Free &
Reduced
Lunch
Poverty
Rate
Cost
Category
Discount
Rate
Pop.
Weight
Factor
Pop.
Weighted
Discount
Rate
School 1 1000 300 30% Urban 50% 0.31 0.15
School 2 750 250 33% Urban 50% 0.23 0.12
School 3 500 200 40% Urban 60% 0.15 0.09
Cost Sub-Total 2250 750 33% Urban 50% 0.69 0.35
School 4 800 400 50% Urban 80% 0.25 0.20
School 5 200 100 50% Rural 80% 0.06 0.05
Cost Sub-Total 1000 500 50% Rural 80% 0.31 0.25
Total 3250 1250 38% -- -- 1.00 --
Simple Average -- -- -- -- 64% -- --
Rounded Simple Average -- -- -- --   -- --
Pop. Weighted Average -- -- -- -- -- -- 61%
Rounded Pop. Weighted Average -- -- -- -- 65% -- 60%
Area-wide Rate -- -- -- -- -- -- 60%
Rounded Area-wide Rate -- -- -- -- -- -- 60%



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[ IX. Application Forms ] Return to E-rate Report Table of Contents [ Appendix B.
Checklist for Approval of New Technology Plans ]

This page last updated 8/10/97 (pjh).