weighted average
Definition
Mean in which each item being averaged is multiplied by a number (weight) based on the item's relative importance. The result is summed and the total is divided by the sum of the weights. Weighted averages are used extensively in descriptive statistical analysis such as index numbers. Also called weighted mean.
weighted average is in the Statistics, Mathematics, & Analysis subject.
weighted average appears in the definitions of the following terms:
threshold limit value (TLV),
permissible exposure limit (PEL),
settlement price,
cost of funds index (COFI),
Bayesian statistics,
Macaulay duration,
composite cost of capital,
periodic inventory method,
effective exchange rate (EXR),
weighted mean
and
weighted average appears in these other terms: weighted average cost of inventory, weighted average cost of capital, weighted average contribution margin ratio
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