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Mathematical formula of weight
For example, the following is a classmate's exam results in a certain subject:

Peacetime test

80,

temporal

90,

End of term

95

The calculation method of subject scores stipulated by the school is:

Usually the test accounts for

20%;

Interim results have been accounted for.

30%;

Final grade accounts for

50%;

Here, the proportion of each achievement is called weight or weight. Then,

weighted average

=

80*20%

+

90*30%

+

95*50%

=

90.5

arithmetic average

=

(80

+

90

+

95)/3

=

88.3

The above example is the case where the weight is known. The following example is the case where the weight is unknown:

Stock a, 1000 shares, price10;

Stock b, 2000 shares, price15;

arithmetic average

=

( 10

+

15)

/

2

=

12.5;

weighted average

=

( 10

x

1000

+

15

x

2000)

/

( 1000

+

2000)

=

13.33

In fact, when the weight of each number is the same, the weighted average is equal to the arithmetic average.

Tip: The Dow Jones Industrial Average is an arithmetic average, and the Standard & Poor's 500 is a weighted average.