weighted average

British  

noun

1. an average calculated by taking into account not only the frequencies of the values of a variable but also some other factor such as their variance. The weighted average of observed data is the result of dividing the sum of the products of each observed value, the number of times it occurs, and this other factor by the total number of observations

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Example Sentences

Return on invested capital, or ROIC, still exceeds the weighted average cost of capital, or WACC, and this margin is known by analysts as the “Wicksellian Spread,” named after the economist.

From MarketWatch • May 8, 2026

Bringing the company’s weighted average interest rate down is crucial for future success.

From Barron's • May 7, 2026

The result: Across 41 industries that rely most heavily on low-skilled immigrants, hourly earnings rose by a weighted average of 3.5% in February from a year earlier, according to the latest figures.

From The Wall Street Journal • Apr. 22, 2026

San Bernardino County ranked as the most ozone-polluted county in the nation, with 159.2 weighted average unhealthy ozone days, followed by Riverside County at 126.7 and Los Angeles County at 119.0.

From Los Angeles Times • Apr. 22, 2026

P, defined as a weighted average with the weights of the first year, would, then, still be 105/14 cents.

From The Value of Money by Anderson, Benjamin M.