The below calculator can be used to calculate the common value of a specific group of numbers With various amounts of relevance. The relevance of every number is known as its weight. The weights needs to be displayed like a percentage of the entire relevancy. Consequently, all weights needs to be add up to 100%, or 1. Make use of our Weighted average calculator to get an instant result.
Weighted Average Formula
The idea of weighted average formula is utilized in a variety of financial formulas. (WACC) weighted average cost of capital as well as weighted average beta tend to be two illustrations designed to use this formula.
Another instance of making use of this formula happens when an organization has an extensive fluctuation in revenue, possibly because of producing a seasonal item. In the event the company want to compute the average of any one of the variable expenditures, the organization can use the weighted average formula together with sales as the weight to achieve an improved knowledge of their expenditures in comparison with simply how much they produce or sell.