Definition of weighted average
The weighted average is a statistical measure that accounts for the varying importance of individual values.
Unlike the arithmetic average, where all values have the same weight, the weighted average assigns a specific weight (importance) to each value. Values with higher weight influence the result more than values with lower weight.
Weighted average is used in many fields - from finance and statistics, through portfolio valuation, 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 products, and dividing the result by the sum of all weights.
Where is weighted average used?
Weighted average has broad practical applications.
Finance and investments
When calculating the average stock price in a portfolio, where different stocks have different weights based on the investment amount.
Academic assessment
When calculating grade averages, where different subjects or tests 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 average for grades?
If you want to calculate the weighted average of school grades with support for special characters like 5.5 or letters, use our specialized grade average calculator.