Weighted average: Difference between revisions
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imported>Doug Williamson (Add second definition.) |
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* [[Arithmetic mean]] | * [[Arithmetic mean]] | ||
* [[Average]] | * [[Average]] | ||
* [[First in first out]] | |||
* [[Geometric mean]] | * [[Geometric mean]] | ||
* [[Last in first out]] | |||
* [[Mean]] | * [[Mean]] | ||
* [[Median]] | * [[Median]] | ||
Revision as of 08:00, 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.
