Hi guys,
Need some help here, I always assume:
weighted average of x & y multiply by the volume is equivalent to individual vol multiply by the respective x & y. But apparently this is not the case. Example as below:
700kg of palm kernel from origin A with a yield loss of 1.22 (or equivalent to 1/1.22)after processing
300kg of palm kernel from origin B with a yield loss of 1.27 (or equivalent to 1/1.27)after processing
Both origin will be mix together at 70% origin A to 30% origin B to produce crude palm oil.What is the expected crude palm oil output?
If I sum vol/yield individually for each origin A & B:
700/1.22 + 300/1.27 = 809.991
But if I take the weighted average of yield and take total vol./weighted average yield, I'll get:
Weighted average yield: (700*1.22 + 300*1.27)/1000 = 1.235
So, 1000/1.235 = 809.7166
There's a diff of 0.27436, which will be the correct answer?
Thanks!!
Adrian
Need some help here, I always assume:
weighted average of x & y multiply by the volume is equivalent to individual vol multiply by the respective x & y. But apparently this is not the case. Example as below:
700kg of palm kernel from origin A with a yield loss of 1.22 (or equivalent to 1/1.22)after processing
300kg of palm kernel from origin B with a yield loss of 1.27 (or equivalent to 1/1.27)after processing
Both origin will be mix together at 70% origin A to 30% origin B to produce crude palm oil.What is the expected crude palm oil output?
If I sum vol/yield individually for each origin A & B:
700/1.22 + 300/1.27 = 809.991
But if I take the weighted average of yield and take total vol./weighted average yield, I'll get:
Weighted average yield: (700*1.22 + 300*1.27)/1000 = 1.235
So, 1000/1.235 = 809.7166
There's a diff of 0.27436, which will be the correct answer?
Thanks!!
Adrian