# Difference between revisions of "Weighted average"

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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]] |

## Latest 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.