What is Weighted Average?

Weighted average is a statistical measure that considers the varying importance of different elements in a data set. In a standard arithmetic mean (or simple average), each data point contributes equally to the final average value. However, in a weighted average, certain data points have a greater impact on the result than others, depending on their assigned weights.

For Example: Suppose we are calculating the average score of a student’s performance in a course. If exams are considered more important than homework assignments, we would assign higher weights to exam scores and lower weights to homework scores when calculating the overall average.

Weighted averages offer flexibility in analyzing data by allowing us to adjust the impact of different values based on specific criteria or preferences.

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.