Estimating an average cost (the way you did) does not show the actual situation. Considering the Pareto rule, saying that 80% of the cost is generated by 20% affects your calculations much. This can explain why some of the albums costs $1M to produce.
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Estimating an average cost (the way you did) does not show the actual situation. Considering the Pareto rule, saying that 80% of the cost is generated by 20% affects your calculations much. This can explain why some of the albums costs $1M to produce.