Weighted average: Difference between revisions
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imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Add second definition.) |
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''Statistics''. | 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. | ||
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= 8.4% | = 8.4% | ||
2. ''Inventory accounting.'' | |||
A average valuation method using units of inventory as the weighting factors. | |||
Revision as of 07:59, 24 August 2019
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.
