### Weighted Mean

The weighted mean of the selection based on a specified weighting column.

It is a mean where some values contribute more than others.

Weighted means can help with decisions where some considerations are more important than others.

The formula:

Weighted Mean = |
Σwx |

Σw |

In other words: multiply each weight w by its matching value x, sum that all up, and divide by the sum of weights.

Sample 1:

Sam wants to buy a new camera, and decides on the following rating system:

q Image Quality 50%

q Battery Life 30%

q Zoom Range 20%

Based on reviews the Cony camera gets 8 (out of 10) for Image Quality, 6 for Battery Life and 7 for Zoom Range

The Sanon camera gets 9 for Image Quality, 4 for Battery Life and 6 for Zoom Range

Which camera is best?

Cony: (50/100) × 8 + (30/100) × 6 + (20/100) × 7 = 4 + 1.8 + 1.4 = 7.2

Sanon: (50/100) × 9 + (30/100) × 4 + (20/100) × 6 = 4.5 + 1.2 + 1.2 = 6.9

Sam decides to buy the Cony.

Sample 2:

A Company sells Mango products with the following Revenue breakdown for the current year:

Products |
Revenue |

Mango Tarts |
45,000 |

Mango Juice |
297,000 |

Dried Mangoes |
975,000 |

Total |
1,317,000 |

The revenue values per product.

The Company posted an increase in revenue from the previous year with the following Percentage Change:

Products |
Revenue Percentage Change |

Mango Tarts |
50% |

Mango Juice |
10% |

Dried Mangoes |
30% |

Revenue percentage change values.

Compute for the all-over revenue change percent:

((50/100) x 45,000 + (10/100) x 297,000 + (30/100) x 975,000) / 1,317,000

or

(22,500 + 29,700 + 292,500) / 1,317,000 = .26 or 26%