Weighted average: Difference between revisions

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1. ''Statistics''.
A weighted average is an average calculated using appropriate weighting factors, often market values.
A weighted average is an average calculated using appropriate weighting factors, often market values.
For example, the weighted average of 10% and 3.6%, weighted by market values of $75m and $25m respectively, is:
(10% x $75m) + (3.6% x $25m) / ($75m + $25m)
= 8.4%
2. ''Inventory accounting.''
A average valuation method using units of inventory as the weighting factors.




== See also ==
== See also ==
* [[Arithmetic mean]]
* [[Arithmetic mean]]
* [[Average]]
* [[First in first out]]  (FIFO)
* [[Geometric mean]]
* [[Geometric mean]]
* [[Inventory]]
* [[Last in first out]]  (LIFO)
* [[Mean]]
* [[Mean]]
* [[Median]]
* [[Median]]
* [[Mode]]
* [[Mode]]
* [[Moving average]]
* [[Moving average]]
* [[Weighted Average Life]]
* [[Simple average]]
* [[Weighted average cost of capital]]
* [[Statistics]]
* [[Weighted average maturity]]
* [[Weighted average cost]]
* [[Weighted average carbon intensity]] (WACI)
* [[Weighted average cost of capital]] (WACC)
* [[Weighted Average Final Maturity]] 
* [[Weighted Average Life]]  (WAL)
* [[Weighted average maturity]]  (WAM)
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Liquidity_management]]

Latest revision as of 18:02, 24 March 2023

1. Statistics.

A weighted average is an average calculated using appropriate weighting factors, often market values.

For example, the weighted average of 10% and 3.6%, weighted by market values of $75m and $25m respectively, is:

(10% x $75m) + (3.6% x $25m) / ($75m + $25m)

= 8.4%


2. Inventory accounting.

A average valuation method using units of inventory as the weighting factors.


See also