Weighted Average
Definition
Weighted Average — Meaning, Definition & Full Explanation
A weighted average is a statistical measure that assigns different levels of importance, or "weights," to each data point in a set before calculating the average. Unlike a simple average, it reflects the relative contribution or significance of each value, providing a more accurate representation when data points do not have equal relevance. This method is widely used in finance, accounting, and various other fields to derive a more meaningful average.
What is Weighted Average?
A weighted average is a type of average that accounts for the varying degrees of importance or frequency of different numbers within a dataset. Instead of treating all numbers equally, as in a simple arithmetic mean, this measure assigns a specific 'weight' to each data point. This weight signifies the relative importance or occurrence of that particular value