How To Calculate Value Weighted Average Complete Guide

how to calculate value weighted average. Weighted average is a type of an average that takes into account the relative importance of each value under consideration and is calculated by multiplying the respective weights in percentage terms with its corresponding value Weighted Average Formula W1X1 W2X2 WnXn Here w respective weight in percentage x value. New iPhone score 04 x 5 02 x 8 04 x 7 64.

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To calculate Weighted Average we must have specific weightage for each variable taken as value and the weightage must equal to 100. Significance and Use of Weighted Average Formula. Multiple each grade by its weight.

Now we can calculate the cost of the sale by taking the average cost per unit multiplied by the number of units sold.

Now to get the weights for each company first add up the market capitalization for each company to get the total. Lets Look at an Example. Multiply the weight by each value. Using each features relative importance as the weight value lets now calculate each phone models weighted average score.

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