What is the of weighted average Meaning and Definition
What is the of weighted average
Pronunciation
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Part of Speech
Noun
Definition
A weighted average is a calculation that assigns a weighted value to each data point based on its importance or relevance, and then calculates the average of those weighted values.
Examples
- The company used a weighted average to calculate employee performance, taking into account both individual and team contributions.
- The investor used a weighted average to determine the overall performance of their portfolio.
Synonyms
- Weighted mean
- Median
Antonyms
- Unweighted average
- Median
Etymology
The term “weighted average” originated in the 17th century, derived from the Latin words “weight” and “average”. It was first used in mathematics and statistics to describe the calculation of averages where different data points were given different weights.
Usage Notes
When using a weighted average, it’s essential to ensure that the weights are accurate and reflect the relative importance of each data point. Additionally, the weighted average should be used when comparing data points with different units or scales.
Cultural References
Weighted averages are commonly used in finance, economics, and scientific research. They can be found in various industries, including healthcare, education, and more.
Idiomatic Expressions or Phrases
For example, “The new policy is designed to give more weight to the opinions of experienced employees.” This phrase illustrates the concept of weighted average in a practical context.
Related Words or Phrases
- Average
- Median
- Mode
Collocations
- Weighted average stock portfolio
- Weighted average grade
- Weighted average cost method
Frequency of Use
Weighted averages are commonly used in various fields, but the frequency of use can vary depending on the industry or context.
Common Misspellings
Weighted avarege, Weigted average, Weighted averge