- The weighted average takes into account the relative importance or frequency of some factors in the data set.
- A weighted average is sometimes more accurate than a simple average.
- With a weighted average, each data point value is multiplied by the assigned weight, which is then summed and divided by the number of data points.
- For this reason, a weighted average can improve the accuracy of the data.
- Investors in stocks use the weighted average to track the value of stocks bought at different times.