Explain this!
Junior Member
- Joined
- Feb 7, 2019
- Messages
- 164
What is the weighted average for the following using the weighted average calculation as shown below
W1X1 + W2X2 + WnXn
W = relative weight (%)
X = value
This is seen at the following: https://www.financeformulas.net/Weighted_Average.html
For example, can the above formula be used for the following to determine the weighted average?
2 boxes @ $0.37
1 box @ $0.38
4 boxes @ $0.42
(1) Do the amounts for boxes represent the value and do the dollar amounts represent the relative weight or is it the opposite?
$0.87 X 2 + $0.38 X1 + $0.42 X 4 divided by 2 + 1 + 4
Or is it more accurate as shown below?
2 X $0.87 + 1 X $0.38 + 4 X $0.42 divided by 2 + 1 + 4
(2) Does the relative weight (W) need to be a percent?
Answer is $0.40 per box
I am not a high school student or a college student.
W1X1 + W2X2 + WnXn
W = relative weight (%)
X = value
This is seen at the following: https://www.financeformulas.net/Weighted_Average.html
For example, can the above formula be used for the following to determine the weighted average?
2 boxes @ $0.37
1 box @ $0.38
4 boxes @ $0.42
(1) Do the amounts for boxes represent the value and do the dollar amounts represent the relative weight or is it the opposite?
$0.87 X 2 + $0.38 X1 + $0.42 X 4 divided by 2 + 1 + 4
Or is it more accurate as shown below?
2 X $0.87 + 1 X $0.38 + 4 X $0.42 divided by 2 + 1 + 4
(2) Does the relative weight (W) need to be a percent?
Answer is $0.40 per box
I am not a high school student or a college student.