weighted average

Examples of weighted average in the following topics:

• Average Cost Method

  • This gives a weighted-average unit cost that is applied to the units in the ending inventory.
  • There are two commonly used average cost methods: Simple Weighted Average Cost method and Moving-Average Cost method.
  • The following is an example of the weighted average cost method:
  • The Weighted-Average Method of inventory costing is a means of costing ending inventory using a weighted-average unit cost.
  • Weighted-average costing takes a middle-of-the-road approach.

• Weighted Average Cost of Capital

  • The WACC is the cost of capital taking into account the weights of each component of a company's capital structure.
  • The weighted average cost of capital (WACC) is the rate a company is expected to pay, on average, to its security holders.
  • Stated differently, the return on capital of a new project must be greater than the weighted average cost of capital.
  • Since companies raise money using any number and combination of these sources - i.e. debt, common stock, preferred stock, retained earnings - it is important to calculate the cost of capital taking into account the relative weights of each component of a company's capital structure.

• Expected Values of Discrete Random Variables

  • The expected value of a random variable is the weighted average of all possible values that this random variable can take on.
  • In probability theory, the expected value (or expectation, mathematical expectation, EV, mean, or first moment) of a random variable is the weighted average of all possible values that this random variable can take on.
  • The weights used in computing this average are probabilities in the case of a discrete random variable.
  • If all outcomes $x_i$ are equally likely (that is, $p_1 = p_2 = \dots = p_i$), then the weighted average turns into the simple average.
  • If the outcomes $x_i$ are not equally probable, then the simple average must be replaced with the weighted average, which takes into account the fact that some outcomes are more likely than the others.

• Inventory Techniques

  • Average cost method is quite straightforward.
  • It takes the weighted average of all units available for sale during the accounting period and then uses that average cost to determine the value of COGS and ending inventory.
  • There are two commonly used average cost methods: Simple weighted average cost method and moving average cost method.
  • This gives a Weighted Average Cost per Unit.
  • Finally, this amount is multiplied by Weighted Average Cost per Unit to give an estimate of ending inventory cost.

• Writing Formulas for Polymeric Macromolecules

  • HDPE is composed of macromolecules in which n ranges from 10,000 to 100,000 (molecular weight 2*105 to 3 *106 ).
  • Because of this, polymer molecular weights are usually given as averages.
  • Two experimentally determined values are common: Mn , the number average molecular weight, is calculated from the mole fraction distribution of different sized molecules in a sample, and Mw , the weight average molecular weight, is calculated from the weight fraction distribution of different sized molecules.
  • Since larger molecules in a sample weigh more than smaller molecules, the weight average Mw is necessarily skewed to higher values, and is always greater than Mn.
  • As the weight dispersion of molecules in a sample narrows, Mw approaches Mn, and in the unlikely case that all the polymer molecules have identical weights (a pure mono-disperse sample), the ratio Mw / Mn becomes unity.

• The Weightings

  • To calculate the weighted average cost of capital (WACC) we must take into account the weight of each component of a company's capital structure.
  • The "weighting" varies based on how the company finances its activities.
  • If the value of the company's equity exceeds its debt, the cost of its equity will have more weight.
  • Since we are measuring expected cost of new capital, the calculation of weighted average cost of capital usually uses the market values of the various components rather than their book values.
  • Define how a company's weighted average cost of capital is weighted

• Interpreting Significant Results

  • If the sample mean for the obese patients is significantly lower than the sample mean for the average-weight patients, then one should conclude that the population mean for the obese patients is lower than the sample mean for the average-weight patients.
  • If the former of these is rejected, then the conclusion is that the population mean for obese patients is lower than that for average-weight patients.
  • If the latter is rejected, then the conclusion is that the population mean for obese patients is higher than that for average-weight patients.

• Review

  • The first six exercises refer to the following study: In a survey of 100 stocks on NASDAQ, the average Statistic percent increase for the past year was 9% for NASDAQ stocks.
  • Their two-week weight gain is below.
  • (Note: a loss is shown by a negative weight gain. )

• Introduction to multiple regression exercises

  • The summary table below shows the results of a linear regression model for predicting the average birth weight of babies, measured in ounces, based on the smoking status of the mother.
  • (c) Is there a statistically significant relationship between the average birth weight and smoking?
  • The summary table below shows the results of a linear regression model for predicting the average birth weight of babies, measured in ounces, from parity.
  • (c) Is there a statistically significant relationship between the average birth weight and parity?
  • The summary table below shows the results of a regression model for predicting the average birth weight of babies based on all of the variables included in the data set.

• Flotation

  • When any boat displaces a weight of water equal to its own weight, it floats.
  • The average density of an object is what ultimately determines whether it floats.
  • If its average density is less than that of the surrounding fluid, it will float.
  • where $\bar{\rho}_\mathrm{obj}$ is the average density of the object and $\rho_\mathrm{fl}$is the density of the fluid.
  • Note that it mentions the average density of the object.