Definition of Weighted Average
Weighted average is a statistical measure that accounts for the different importance of individual values.
Unlike arithmetic average where all values have equal weight, weighted average assigns each value a specific weight (importance). Values with higher weights affect the result more than values with lower weights.
Weighted average is used in many areas - from finance and statistics, through portfolio evaluation, to calculating grade averages in school.
Formula for Calculating Weighted Average
The mathematical formula for calculating weighted average.
The calculation works by multiplying each value by its weight, adding all these products together, and dividing the result by the sum of all weights.
Where is Weighted Average Used?
Weighted average has wide practical applications.
Finance and Investments
When calculating the average price of stocks in a portfolio, where different stocks have different weights based on investment volume.
Academic Evaluation
When calculating grade averages, where different subjects or exams have different weights (importance).
Statistics and Research
In surveys and studies, where different groups of respondents have different weights based on their representation in the population.
Looking for Weighted Grade Average?
If you need to calculate weighted average of school grades with support for special characters like 1-, 2+ or letters A-F, use our specialized grade average calculator.