Weighted Average Formula
The formula for calculating the weighted average (x̄) of a dataset with n values is given by:
[Tex]Weighted Average (\bar{x})= \frac{w_1\cdot x_1 + w_2\cdot x_2 + w_3\cdot x_3 + w_4\cdot x_4 + ……. + w_n\cdot x_n }{w_1 + w_2 + w_3 + w_4 + ……. + w_n } [/Tex]
OR
[Tex] Weighted Average (\bar{x})= \frac{\sum_{i = 1}^{n}w_ix_i }{\sum_{i = 1}^{n}w_i} [/Tex]
Where:
- xi represents the individual values in the dataset.
- wi denotes the weights assigned to each value.
- [Tex]\sum_{i = 1}^{n}[/Tex]signifies the summation over all values in the dataset.
How to Calculate Weighted Average?
Weighted Average is a method of finding the average of a set of numbers where each number (or data point) is given a weight based on its importance or relevance. Weighted averages are commonly used in various fields such as finance, economics, education, and statistics, where different data points may have different levels of importance.
This article offers a full explanation of weighted average calculation, including relevant concepts and methods, as well as a few examples based on it.
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