Weighted Average Calculator
You must first recognise what a weighted average is before you can use a weighted average calculator. Although the weighted average has nothing to do about weight conversion, the two concepts are sometimes confused. When all values are added together and divided by the number of values, the typical average, or mean, is calculated. Because all of the values have equal weights, this can be calculated with our average calculator, by hand, or with a hand-held calculator.
But what happens when values are weighted differently, implying that they are not equally important? The weighted average formula is demonstrated below to calculate the weighted mean. You'll also find examples of how the weighted average method can be used, such as calculating the GPA or calculating the average grade.
What is Weighted Average?
A weighted average is a data set average that considers certain numbers to be more important than others. Statistical analysis, stock portfolios, and teacher grading averages are all examples of weighted averages. It's a useful tool for adjusting for stock fluctuations, uneven or misrepresented data and ensuring that similar data points are represented in the same proportion.
Example of a Weighted Average
Accountants use a weighted average to find out how much something costs. The weighted average method is useful in some industries where quantities are mixed or too many to count. This figure is used in the cost-of-goods-sold calculations. Last in, first-out (LIFO) and first-in, first-out (FIFO) are two other costing strategies.
How to calculate weighted average?
The total reflects that some pieces of the data have more "weight," or significance, than others or occur more frequently, which differs from finding the normal average of a data set. The weighted average of a set of numbers is calculated by multiplying each value in the set by its weight and then adding the results.
Follow these steps for a more detailed explanation of the weighted average formula:
- Step 1: Calculate the value of each data point.
- Step 2: Multiply each value by the weight.
- Step 3: Step two's results should be added together.
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When the weights don't add up to one, how do you calculate a weighted average?
You may need to calculate the average of a data set that does not add up to 1 or 100 percent on occasion. This can happen in a random sample of data from populations or in research. You can find the weighted average of this set of numbers by multiplying each value by its weight, adding the products, and dividing the sum by the sum of all weights.
Follow these steps for a more detailed explanation of the weighted average formula when the weights don't add up to one:
- Step 1: Calculate the value of each number.
- Step 2: Calculate the total of all weights.
- Step 3: Calculate the total of each number multiplied by the weight of each number.
- Step 4: Step three's results are multiplied by the sum of all weights.
FAQs on Weighted Average Calculator
1. What is a Weighted Average?
A weighted average is a calculation that considers the relative importance of numbers in a data set. Evey number inside the data set is multiplied by a predefined weight even before the final calculation is made in calculating a weighted average.
2. What's the difference between a weighted average and a standard deviation?
A weighted average, unlike a simple average, takes into account the relative contribution (or weight) of the items being averaged. As a result, it places a higher value on items that occur more frequently on average.
3. How do I calculate the weighted average?
- Step 1: Calculate the value of each data point.
- Step 2: Multiply each value by the weight.
- Step 3: Step two's results should be added together.
