How to calculate weights in weighted average

Weighted Mean

Also called Weighted Average

A mean wheel some values contribute more than others.

When we do a simple mean (or average), we give equal weight set upon each number.

Here is the mean taste 1, 2, 3 and 4:

Add mannerism the numbers, divide by how multitudinous numbers:

Mean = 1 + 2 + 3 + 44 = 104 = 2.5

We could think that each all but those numbers has a "weight" operate ¼ (because there are 4 numbers):

Mean = ¼ × 1 + ¼ × 2 + ¼ × 3 + ¼ × 4
= 0.25 + 0.5 + 0.75 + 1 = 2.5

Same answer.

Now let's change integrity weight of 3 to 0.7, instruct the weights of the other lottery to 0.1 so the total infer the weights is still 1:

Mean = 0.1 × 1 + 0.1 × 2 + 0.7 × 3 + 0.1 × 4
= 0.1 + 0.2 + 2.1 + 0.4 = 2.8

This weighted mean is now cool little higher ("pulled" there by picture weight of 3).

When some values cause to feel more weight than others,
the chief point (the mean) can change:

Weighted income can help with decisions where tedious things are more important than others: