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The weighted arithmetic mean is similar to an ordinary arithmetic mean (the most common type of average ), except that instead of each of the data points contributing equally to the final average, some data points contribute more than others. The notion of weighted mean plays a role in descriptive statistics and also occurs in a more general ...
Definition. The arithmetic mean of a set of observed data is equal to the sum of the numerical values of each observation, divided by the total number of observations. Symbolically, for a data set consisting of the values , the arithmetic mean is defined by the formula: [ 2] (For an explanation of the summation operator, see summation .)
A weight function is a mathematical device used when performing a sum, integral, or average to give some elements more "weight" or influence on the result than other elements in the same set. The result of this application of a weight function is a weighted sum or weighted average. Weight functions occur frequently in statistics and analysis ...
In statistics, a moving average ( rolling average or running average or moving mean[ 1] or rolling mean) is a calculation to analyze data points by creating a series of averages of different selections of the full data set. Variations include: simple, cumulative, or weighted forms. Mathematically, a moving average is a type of convolution.
In probability theory, the expected value (also called expectation, expectancy, expectation operator, mathematical expectation, mean, expectation value, or first moment) is a generalization of the weighted average. Informally, the expected value is the arithmetic mean of the possible values a random variable can take, weighted by the ...
The weighted average cost of capital ( WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management. The WACC represents the minimum return that a company ...
In finance, the weighted-average life (WAL) of an amortizing loan or amortizing bond, also called average life, [ 1][ 2][ 3] is the weighted average of the times of the principal repayments: it's the average time until a dollar of principal is repaid. In a formula, [ 4] where: is the time (in years) from the calculation date to payment . If ...
Average. In ordinary language, an average is a single number or value that best represents a set of data. The type of average taken as most typically representative of a list of numbers is the arithmetic mean – the sum of the numbers divided by how many numbers are in the list.