Who's Online box block that Drupal provides lets you configure how do you count the users who are currently online on your site. If you set a large time value say last 30 minutes to count whoever came in last 30 minutes then you obviously get a large number of people who seem to be currently on your site. But many of these people may no longer be currently on the site. To make it more accurate you should find out from your site's analytics software, what is the average time spent by a visitor. This is the time you should set in your Who's Online configuration. That would be a slightly reasonable count of how many visitors are currently online on your site i.e. you count the number of visitors in the average amount of time spent on your site. However a word of warning this may be way off if the variance of time spent on various sites over time is high.
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