The formula to calculate the Weighted Average (WA) is:
\[ WA = \frac{\sum (value \times weight)}{\sum weight} \]
Where:
Weighted average is calculated by multiplying each value by its corresponding weight, summing these products, and then dividing by the total of the weights. It is a measure that takes into account the relative importance of each value.
Consider an example where the values and weights are:
Using the formula to calculate the Weighted Average:
\[ WA = \frac{(80 \times 0.2) + (90 \times 0.5) + (70 \times 0.3)}{0.2 + 0.5 + 0.3} = 82 \]
This means that the weighted average for this example is 82.