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.


Full Definition of Weighted Average




Weighted Average FAQ's



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Weighted Average. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 20, 2019 https://payrollheaven.com/define/weighted-average/.
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Weighted Average. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/weighted-average/ (accessed: July 20, 2019).
American Psychological Association (APA):
Weighted Average. PayrollHeaven.com. Retrieved July 20, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/weighted-average/

Definition Sources


Definitions for Weighted Average are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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