Very basically, you have to have a constant tone input to take the place of a 'carrier'/'dead-key'. Doesn't much matter how you do it, but it has to be done that way (as Happy_Hamer said with his example).
And because it's a constant tone, it won't make any difference if you measure -power- in AVG or Pep, it will be the same. If it isn't then your meter is bad. Howz that for an interesting thingy??
- 'Doc