SQL AVG in subselect?

Firstly, always try to avoid using a correlated subquery when you can achieve the same result with a join, the optimiser will deal with it much better and you'll get the results faster.

You got the set of records which have the specific id and rate_category. And avgRate is an average value from all records with the same rate_category - this set has the outer one as subset(see conditions of both queries). So all returned records have the same avgRate value.

So I see some holes in your logic line.

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