Define: Weighted Average

UK Accounting Glossary

Definition: Weighted Average


Quick Summary of Weighted Average


An arithmetic average that takes into account the importance of the items making up the average.




What is the dictionary definition of Weighted Average?

Dictionary Definition


The weighted average (weighted mean) is an arithmetic average that takes into account the importance of the items making up the average.

In calculating the value of a share index, the share prices are typically weighted in some way; most frequently by the market capitalisation of the company.


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Full Definition of Weighted Average



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Weighted Average FAQ's



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https://payrollheaven.com/define/weighted-average/
Modern Language Association (MLA):
Weighted Average. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 21, 2019 https://payrollheaven.com/define/weighted-average/.
Chicago Manual of Style (CMS):
Weighted Average. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/weighted-average/ (accessed: November 21, 2019).
American Psychological Association (APA):
Weighted Average. PayrollHeaven.com. Retrieved November 21, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/weighted-average/

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This glossary post was last updated: 5th May 2019.