# Weighted average

From ACT Wiki

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

- Arithmetic mean
- Average
- First in first out (FIFO)
- Geometric mean
- Inventory
- Last in first out (LIFO)
- Mean
- Median
- Mode
- Moving average
- Simple average
- Statistics
- 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)