weighted average: meaning, definition, pronunciation and examples
C1Formal, Technical, Academic
Quick answer
What does “weighted average” mean?
An average in which each quantity to be averaged is assigned a weight, and these weights determine the relative importance of each quantity in the overall average.
Audio
Pronunciation
Definition
Meaning and Definition
An average in which each quantity to be averaged is assigned a weight, and these weights determine the relative importance of each quantity in the overall average.
A statistical measure that accounts for varying degrees of importance among the data points being averaged, commonly used in finance, education, economics, and data analysis to produce more representative results.
Dialectal Variation
British vs American Usage
Differences
No significant lexical or grammatical differences. The concept and term are identical in both varieties.
Connotations
Identical technical connotations in finance, statistics, and academia.
Frequency
Equally frequent in technical and business contexts in both regions.
Grammar
How to Use “weighted average” in a Sentence
The weighted average of [plural noun] is calculated.We weighted average the [plural noun] based on [criteria].A weighted average is used to [purpose].Vocabulary
Collocations
Examples
Examples of “weighted average” in a Sentence
verb
British English
- The data will be weighted averaged to reflect regional economic importance.
- We need to weighted-average these scores before reporting.
American English
- The system weighted-averages the inputs automatically.
- They decided to weighted average the poll results.
adjective
British English
- The weighted-average price is shown in the final column.
- We offer a weighted-average calculation service.
American English
- The weighted-average cost is crucial for our analysis.
- She reviewed the weighted-average scores.
Usage
Meaning in Context
Business
Used to calculate the average cost of capital (WACC) or inventory (weighted average cost).
Academic
Used in statistics, economics, and research methodology to aggregate data with different significance levels.
Everyday
Rare in casual conversation; might be used when discussing grade point averages (GPA) or investment returns.
Technical
Core term in mathematics, statistics, data science, and engineering for aggregated measurements.
Vocabulary
Synonyms of “weighted average”
Neutral
Weak
Vocabulary
Antonyms of “weighted average”
Watch out
Common Mistakes When Using “weighted average”
- Using it interchangeably with 'mean' or 'average' without specifying the weighting.
- Incorrectly ordering the words as 'average weighted'.
- Forgetting to define or justify the weights used in the calculation.
FAQ
Frequently Asked Questions
All weighted averages are a type of mean, but not all means are weighted. A simple (arithmetic) mean gives equal weight to all values.
It is ubiquitous in finance (e.g., WACC, stock indices), education (GPA calculation), economics (index numbers), and any statistical analysis where data points have differing relevance.
Multiply each value by its assigned weight, sum these products, and then divide by the sum of the weights. Formula: Σ(value_i * weight_i) / Σ(weight_i).
Typically, no. Weights are usually zero or positive numbers. Negative weights would invert the contribution of a value, which is not standard in the common interpretation of a weighted average.
An average in which each quantity to be averaged is assigned a weight, and these weights determine the relative importance of each quantity in the overall average.
Weighted average is usually formal, technical, academic in register.
Weighted average: in British English it is pronounced /ˌweɪtɪd ˈæv(ə)rɪdʒ/, and in American English it is pronounced /ˌweɪt̬ɪd ˈæv(ə)rɪdʒ/. Tap the audio buttons above to hear it.
Learning
Memory Aids
Mnemonic
Think of a see-saw (teeter-totter). A heavy child (high weight) sitting closer to the centre can balance a lighter child (low weight) sitting far out. The weighted average finds that balancing point.
Conceptual Metaphor
BALANCE WITH INFLUENCE (Some factors pull harder on the result than others).
Practice
Quiz
What is the primary purpose of using a weighted average instead of a simple average?