Altair® Panopticon

# WeightedMean

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:

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:

• Image Quality 50%

• Battery Life 30%

• 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

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%

NOTE: Weighted columns such as Weighted Mean, Weighted Harmonic Mean, and Weighted Sum have the Weight drop-down list enabled.